US stock futures plunge, while oil surges to $100 a barrel and safe-havens rally after Russia attacks Ukraine

• Global equities slumped on Thursday after Russian forces attacked Ukraine, with blasts heard in the capital Kyiv, according to reports.
• Dow Jones futures tumbled by 800 points in early trade, while European stock markets plunged and oil hit $100 a barrel.

US stock markets looked set to fall sharply on Thursday, as futures slumped and oil hit $100 a barrel after Russian forces attacked Ukraine overnight, with blasts heard from the capital city of Kyiv to the eastern city of Kharkiv, according to media reports.

Ukraine's foreign minister called Russia's actions "a full-scale invasion of Ukraine." The ministry said in a Thursday statement that Russian forces were "launching attacks on peaceful Ukrainian cities from different directions."

Russian President Vladimir Putin announced "special military operations" in Ukraine, according to a Reuters report that quoted him as telling Ukrainian soldiers to lay down their weapons and "go home."

Earlier this week, Putin said Moscow recognized the independence of two separatist Ukrainian states.

US stock futures tumbled, with those on the Dow Jones falling by over 830 points, or 2.5%, while those on the S&P 500 fell 2.5% and those on the Nasdaq 100 lost 3.1%. The benchmark indices slid on Wednesday, as hopes faded for a peaceful resolution, leaving the S&P down 1.8%, the Dow Jones down 1.4%, and the Nasdaq 100 off by 2.6%.

In Europe, the Stoxx 600 fell almost 4.0%, set for its biggest one-day fall since June 2020, while gauges of investor nervousness soared, with the VIX up 20% on the day and Germany's VDAX-New up 22%.

"Expect a risk-off day in markets. Expect major volatility. Expect the fog of war: known and unknown unknowns, fake news, false flags, and even censorship can all be expected; sadly, so can "pain, dirt, and death"," Rabobank strategist Michael Every wrote in a daily note.

"And don't expect this to be resolved by the end of the day, or the end of the week, or the end of the month," he said.

Russian markets nosedived, with around 50% wiped off the major stock indices at one point, while the ruble hit an all-time low against the dollar and a number of brokers halted trading in the currency, given the immense volatility.

Tensions between Russia and Ukraine have been raging for weeks, with Russian troops mustering along various borders. Putin ordered troops to cross into Ukraine on Tuesday, triggering Western sanctions on banks and billionaires with ties to the Kremlin, as well as a halt to a key natural gas pipeline project from Russia to northern Europe.

"Russian markets are in meltdown, chiefly on sanctions fears and the country effectively being ousted from the international financial order," Markets.com strategist Neil Wilson said.

Given Russia's position as one of the world's largest producers and exporters of energy and flaring geopolitical tensions, crude oil soared on Thursday, rising almost 4% on the day to hit $100 a barrel for the first time since late 2014. European natural gas prices rose by 30%, as investors prepared for disruption from the region's biggest supplier. Russia provides roughly 40% of European natural gas.

With investors dumping risk assets, perceived safe havens got a boost. US 10-year Treasury yields tumbled 12 basis points to 1.853% as traders flocked to government bonds, while gold soared 3.3% to $1,973 an ounce, its highest since September 2020.

The dollar index rose 1%, as investors sought out the US currency as a shelter. Cryptocurrencies suffered a punishing sell-off, with meme token shiba inu down 20%, while dogecoin fell 15% and bitcoin lost 10% on the day.