Safe-haven assets rally after Russia updates nuclear doctrine

LONDON (Reuters) – Safe-haven assets bounced sharply on Tuesday, after a warning from Russia over its updated nuclear doctrine that was aimed at making possible enemies aware of inevitable retaliation for an attack on the country or its allies.

Investors pushed into government bonds, the Japanese yen and gold, after the Kremlin’s comments following Russian President Vladimir Putin’s approval on Tuesday of the updated nuclear doctrine.

German government yields drop fell as much as 8 basis points on the day to 2.292%, while gold hit a session high around $2,626 an ounce and the dollar sank as much as 0.9% against the yen to 153.28.

An index of European aerospace and defence stocks, which was down by 0.6% earlier, pared some of those losses to trade with just a 0.2% loss on the day.