Breaking: S&P 500 futures drop as Ukraine's military fires mortar shells and grenades at four LPR locations


Early Thursday morning in Europe, risk-aversion hits global markets as Sputnik shared news of Ukraine firing of mortars & grenades on Luhansk People's Republic (LPR) locations.

"The attack came amid tensed relations beween Russia and NATO, whose members have been claiming that Moscow's alleged military buildup near Ukraine's borders would lead to an 'invasion'," as reported by the Russia media Sputnik.

Market implications

Following the news, the US Dollar Index (DXY) gained across the board while reversing the early-day losses. On the same line was a sudden drop in the S&P 500 Futures, as well as the US Treasury yields, down 0.20% intraday and eight basis points (bps) at the latest.

The risk-off mood could well be witnessed in downbeat prices of AUD/USD and NZD/USD. However, gold seems to benefit from the rush to risk-safety as it regains $1,873 by the press time.

It’s worth noting that a lack of details may doubt the news and reverse the recent move should traders hear nothing concrete. Hence, the market players need to remain cautious.

Read: US T-bond yields, S&P 500 Futures portray indecision over Russia, Fed

Fresh updates

Following the news, Reuters quoted sources to reveal more information. "Russian-backed rebels in eastern Ukraine accused Kyiv government forces on Thursday of using mortars to attack their territory, in violation of agreements aimed at ending the conflict, the RIA news agency said," as reported by Reuters.

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