Brent crude touched its highest level for 2014 at $111.12/barrel as Russia is one of the major suppliers of oil and natural gas to Europe. European indices were under selling pressure with CAC 40 (-1.98%), DAX (-2.43%) and FTSE (-1.41%) trading in the red. Russias benchmark index Micex posted its highest intra-day fall (11%) in five years. The Russian rouble also slipped to all-time low.
Among Asian indices, the Nikkei (-1.27%), the Hang Seng (-1.47%), KOSPI (-0.77%), Straits Times (-0.75%) and Jakarta Composite (-0.78%) were trading in the red.
Experts feel the developments in Ukraine would dictate markets in the near-term. "Conviction levels will be tested in the run-up to the elections keeping it volatile. The Ukraine issue is one among several global issues which will influence the market sentiment at least till the polls," said Lalit Nambiar, fund manager & head (research), UTI Mutual Fund.
Meanwhile, the prices of gold touched four-month high in London amid a strengthening risk-off sentiment. Gold touched intra-day of high of $1,350.29/Oz. Back home, among sectoral indices, the BSE Capital Goods (-1.04%), BSE Power (-1.18%) and BSE IT (-1.25%) were among the major losers. Among individual stocks, Dr Reddys Laboratories (-2.97%), BHEL (-2.81%) and Sun Pharmaceutical Industries (-2.75) were the major losers on the 30-share Sensex.