Ukraine crisis: Russian equities tumble 10% as central bank hikes rates

Russia's benchmark Micex index has fallen over 10% in response to geopolitical tensions in Ukraine, with the country's central bank hiking rates in a bid to prop up the rouble.

Russian equities tumbled this morning after the country's forces surrounded Ukrainian military bases in the Crimea over the weekend. The Micex was down 10% at 1,300 shortly after 08:00 UK time. The Russian central bank had earlier raised rates from 5.5% to 7% after the rouble fell by 2.3% to hit a record low against the dollar in early trading. The rouble is now trading at 36.34 against the dollar, a fall of 1.4%, and is now down 10% year-to-date. The risk-off environment had a knock-on effect on other markets, with emerging market stocks falling 1% and spot gold rising $22 to $1,3...