4 Min Read
(Recasts with start of U.S. markets; changes dateline; previous LONDON)
* Wall St down on Ukraine fears; weak results from Ford, Amazon
* Rouble, Russian bonds lose ground
* Gold, yen, Swiss franc higher on safe-haven buying
By Barani Krishnan
NEW YORK, April 25 (Reuters) - Global equity markets dropped and the rouble and dollar fell on Friday, pulled down by worsening tensions between Ukraine and Russia, while yields on the 30-year U.S. Treasury bond reached the lowest in nearly a year.
Disappointing earnings from bellwether consumer product companies Amazon and Ford contributed to a decline in U.S. stocks.
Gold, the Japanese yen and Swiss franc all rallied on safe-haven buying. The 30-year U.S. Treasury bond's yield fell to 3.42 percent, lowest since last June.
Russia warned Kiev on Friday that it would face justice after Ukrainian forces killed up to five pro-Russian rebels in eastern Ukraine on Thursday.
Standard & Poor's downgraded Russia's credit rating to triple-B-minus, one level above junk. That forced Russia's central bank to raise interest rates by 50 basis points to 7.5 percent to try to head off inflation from a weakened currency.
"Ukraine is starting to weigh on the market after being ignored for so long," said Chris Bertelsen, chief investment officer of Global Financial Private Capital in Sarasota, Florida.
Russian stocks fell 1 percent and Russia's dollar bonds due in 2023 fell to 94.6 cents on the dollar, just off their lowest levels since issuance in September.
The rouble fell to 36.075 to the dollar, its lowest in more than a week.
MSCI's measure of world stock markets was down 0.64 percent, while European shares fell 0.8 percent on concerns that the United States and Europe were readying tougher sanctions on Moscow that could lead to Russian retaliation.
The Dow Jones industrial average fell 103.04 points, or 0.62 percent, to 16,398.61. The Standard & Poor's 500 Index was down 10.15 points, or 0.54 percent, at 1,868.46. The Nasdaq Composite Index was down 50.95 points, or 1.23 percent, at 4,097.39. All three indexes were off early lows.
The benchmark 10-year U.S. Treasury note was up 7/32 to yield 2.6605 percent.
The dollar fell to 102.02 yen, down 0.28 percent on the day and its lowest in a week. The greenback traded in a narrow range against the Swiss franc, slipping 0.07 percent to 0.8805 franc, having fallen to a one-week low of 0.8798 franc earlier in the day.
German government bonds, favored by risk-wary investors, gained in tandem with gold. Spot gold was up 0.6 percent above $1,301 after hitting a 9-day high at $1,305.
Brent crude oil slipped to around $109.50 a barrel but stayed near seven-week highs. U.S. oil was off 1 percent at $100.77.
U.S. consumer shares were the weakest sector in the S&P. Amazon fell 9 percent to $306.80 after posting a jump in revenue, offset by sharp increases in spending. Ford Motor Co fell 2.9 percent to $15.85 after first-quarter earnings missed expectations, hurt by higher warranty costs in North America. (Reporting by Barani Krishnan; Additional reporting by Marc Jones and Anirban Nag in London; Editing by David Gaffen and Dan Grebler)