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STOXX 600 down 0.9
Nov 19 Reuters Europe39;s main stock index fell to a threemonth low on Tuesday, as heightened geopolitical tensions following Russia39;s warning on its updated nuclear doctrine prompted investors to shift from risky assets to safe havens.
The panEuropean STOXX 600 dropped 0.9, shedding early gains, and was on track for a third straight day of loss, with safehaven assets such as the gold and the U.S. dollar back on the rise.
The Kremlin said the aim of the updated nuclear doctrine was to make potential enemies understand the inevitability of Russian retaliation for an attack.
I don39;t think this will have any impact on the European economy or earnings. It39;s just a natural reaction based on anytime the word nuclear is mentioned from any head of state, said Patrick Armstrong, chief investment officer at Plurimi Wealth.
It obviously sets investors39; minds about potential downside as well as an equity investment is driven by the hope for an upside. So I don39;t think it39;s anything other than rhetoric, and the market will just get past it.
The Euro STOXX volatility index surged to 20.34, and was hovering near the highest levels seen this month, signalling growing investor anxiety.
Automobiles and banks slumped around 2 each, the worsthit sectors in an overall market decline.
The upcoming…