A steep deterioration in risk appetite left equities and base metals nursing sharp losses as the worsening crisis in Libya kept oil prices within sight of two-and-half-year highs, feeding concerns about the outlook for global economic growth.
Those worries were amplified as the markets considered the implications of a potentially broader spread of civil unrest across the world.
“The geopolitical reach of this story is extensive and could go well beyond the Middle East,” said Alan Ruskin, macro strategist at Deutsche Bank.
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