Stocks Rally From Biggest Slump in Month as Bonds Retreat | Stephen Kirkland and Callie Bost

March 4, 2014 (Bloomberg) -- Global stocks rebounded from the biggest drop in a month, bonds retreated and the ruble rallied as Russia stepped back from escalating the crisis in Ukraine.

The MSCI All-Country World Index increased 0.9 percent at 9:30 a.m. in New York, led by Russian equities as the Micex Index (INDEXCF) jumped 4.9 percent. The Standard & Poor’s 500 Index (SPA) climbed 0.8 percent and the U.S. 10-year yield rose three basis points to 2.64 percent. The yen weakened against all of its 16 major peers. Silver, wheat and Brent crude led declines in commodities with losses exceeding 1.4 percent.

Russian President Vladimir Putin said today he’s not considering taking control of Crimea and would send in troops to Ukraine only in an extreme case. U.S. Secretary of State John Kerry arrived today in Kiev as the U.S. and its European allies sought ways to increase economic and diplomatic pressure to deter military escalation. The U.S. Treasury Department said it’s planning an economic assistance package for Ukraine that includes a $1 billion loan guarantee.

READ MORE: Bloomberg