19 Nov 2024

Global financial markets are in safety-seeking mode after Ukraine reportedly launched its first long-range missile strike against Russian territory using American-made systems, and Vladimir Putin signed an updated strategic doctrine that would allow Russian forces to deploy atomic weapons in response to a conventional assault from countries backed by other nuclear powers. Ten-year Treasury yields are retreating, North American equity futures are setting up for a drop at the open, and currency markets are displaying classic flight-to-safety characteristics, with the Swiss franc and Japanese yen outperforming their brethren. Like most geopolitical shocks, this should prove short-lived. Investors expect Putin’s sabre-rattling...