Thursday saw a flight to safety in financial markets as tension escalated in Ukraine and the Middle East. The S&P 500 fell 1.2 percent, the US 10-year Treasury yield fell six basis points to 2.46 percent and gold rose 1.3 percent.
The decline in stocks also comes as investors have become increasingly concerned about market levels. A Bloomberg poll showed that forty-seven percent of financial professionals surveyed said that the equity market is close to unsustainable levels while fourteen percent already saw a bubble.
Adding to the negative sentiment, US housing data on Thursday came out weak. Housing starts fell 9.3 percent in June to a nine-month low while building permits fell 4.2 percent, its second consecutive decline.
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