Emerging-market stocks dropped the most in three weeks as Tencent Holdings Ltd. led a slump in technology companies from a record. Russia’s Micex Index slid after the U.S. threatened tougher sanctions over Ukraine.
Russia’s incursion into Crimea has made Goldman Sachs Group Inc.’s job of improving the country’s image with overseas investors tricky. The bank’s own analysts reduced their growth forecast for Russia yesterday, saying the crisis will prompt companies to delay investment.
Options tied to gains in the benchmark gauge for American stock volatility reached the highest prices in six years last week, reflecting bets that the calm prevailing in equities for the last year won’t last.
American mutual funds are scouring Europe for bargains, snapping up Dutch oil drillers, French drugmakers and Swiss food producers on speculation the region’s rally is just beginning as the U.S. bull market ages.
U.S. stocks rose, with the Standard & Poor’s 500 Index approaching a record, while Treasuries retreated amid continued confidence in the strength of the world’s largest economy. Emerging-market equities capped the biggest weekly gain in five months, and gold and silver rallied.