Which 1998 event caused a sharp global market sell-off after Russia defaulted on its debt?

The 1998 Russian financial crisis caused a sharp global market sell-off after Russia defaulted on domestic debt.

Russia devalued the ruble and announced a debt moratorium on 17 August 1998. The country had been weakened by falling commodity prices, fiscal problems, political uncertainty, and pressure on its exchange-rate system. The ruble then lost much of its value, while Russian banks and businesses faced severe distress.

The crisis became global partly through the collapse of Long-Term Capital Management, a highly leveraged US hedge fund whose positions were exposed to market turmoil. Its rescue was arranged by major financial institutions with Federal Reserve involvement. This episode is distinct from the 1997 Asian crisis, although the two were linked by international investor caution and capital flight.