Stocks set for a painful week as Russia-Ukraine conflict intensifies; bonds to gain

A man sits outside his destroyed building after bombings in the Ukrainian town of Chuguiv on February 24. (Image: AFP)

World markets were set for another tumultuous week after Western nations announced a harsh set of sanctions to punish Russia for its invasion of Ukraine and as fighting intensified for a fourth day.

U.S. stocks have fallen nearly 8% so far this year, on track for the worst annual start since 2009, and worries over the intensifying conflict in Ukraine has shaken markets across the world.

Though Wall Street ended higher on Friday with major indices up between 1.5%-2.5%, analysts expected markets to come under selling pressure on Monday.

"Nobody likes uncertainty, investors certainly dislike uncertainty and we are looking at a pretty protracted conflict," said Peter Kinsella, global head of FX strategy at UBP.

"It seems to me we are in the opening stages of a new Cold War, that is pretty clear and that will weigh on sentiment for a long time."

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