Markets fall on Ukraine tensions

World markets fell on Monday amid a growing sense of crisis over events in Ukraine. In London, the FTSE 100 closed down 1.5%, while markets across Europe fell as much as 3.5%.

Markets in the US also ended the day lower. Earlier, the Russian rouble fell to a fresh all-time low against the US dollar and the euro, while Moscow's stock exchange fell nearly 11%. Analysts said investors were seeking safer havens for their money.

“Risk aversion is rife in the markets as the Ukraine crisis escalated further, prompting investors to rebalance their portfolios away from stocks and toward commodities and other safe haven assets,” said market analyst at Alpari, Craig Erlam.

The price of gold - a traditional safe haven - rose 2.5%, a four-month high.

The price of oil increased by a similar amount, pushing the cost of Brent crude to close to $112 per barrel, while the bonds of financially strong governments such as Germany and Switzerland also saw increased demand.

The $2.6 rise in the oil price also reflects concerns among investors that sanctions could be imposed on Russia - a major global energy producer.

The US State Department has said it is “moving down that path” of imposing sanctions against Russia. The EU has also threatened sanctions.

Although the threats of geopolitical instability have frequently affected world stock markets, the Ukraine crisis has hit markets such as Germany particularly hard because of the country's reliance on Russian gas.

- BBC