Russian president Vladimir Putin (pictured) calmed markets yesterday by saying the country would only use military force as a “last resort”, and that the threat of military action had “dissipated”.

Russia’s Micex index finished up 5.3% yesterday after falling 10% on Monday, with global indices following in a relief rally.

After the S&P 500 rose 1.5% to another record high of almost 1,874, Asian markets followed, with the Nikkei 225 up 1.5% and Australia’s benchmark index up 0.6% to its highest level for six years. 

Safe haven assets suffered, with gold falling 1.2% to $1,334 per ounce and ten-year US Treasuries and the yen both weakening overnight.

But renewed risk appetite does not appear to have lasted into this morning’s sessions, with the Micex dipping another 1.5% and the FTSE set to open slightly lower.

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