A risk off attitude dominated today’s trading session as major European stock indices remained under pressure throughout the entire day as they followed Asian equities lower. London’s blue chip index closed just under 1% lower tracking losses for the fourth consecutive session as a combination of tensions between Russia and the Ukraine and Chinese growth concerns prompted a wide scale sell-off.
Both the S&P 500 and DJIA were trailing lower, both down 0.2% at the time of writing, as investors became concerned with current near record valuations. Spot gold prices managed to gain further support as investors piled into the yellow metal after a brief pause earlier this week which saw prices struggling to breakout significantly above $1,350-1,355/oz. Prices traded towards $1,370 as gold bulls reasserted control, gaining 1.6% throughout the day. Safe haven demand also saw the JPY strengthen further throughout the day, trading towards 102.70 against the dollar throughout the afternoon.
With tensions over Crimea reaching a climax investors may choose to remain side-lined in the coming sessions as they hold out for further market colour. Industrial commodities remain under pressure with three month LME copper prices dropping towards $6,400 during intraday moves, a level last reached in mid-2010.