Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Oil prices have broken through $100 a barrel and global stocks are plunging, after Russian forces invaded Ukraine.
Vladimir Putin ordered a “special military operation” at dawn, amid warnings from world leaders that it could spark the biggest war in Europe since 1945. Within minutes of Putin’s short televised address, at about 5am Ukrainian time, explosions were heard near major Ukrainian cities, including the capital Kyiv.
The United States and its allies will impose “severe sanctions” on Russia, US president Joe Biden said.
Oil prices jumped more than 6% and Brent crude went through $100 a barrel for the first time since mid-2004. It touched $103.32 a barrel, the highest since August 2014, while US light crude soared to $97.51 a barrel, up $5.4.
The rouble hit a record low of 89.60 against the dollar, and the Moscow stock exchange remains temporarily suspended, but is due to reopen at 10am GMT. Russian sovereign dollar bonds are selling off, with the bond maturing in 2029 down more than 15 cents to a record low of 72.5 cents.
Asian stocks tumbled, with Japan’s Nikkei losing 1.8% and Hong Kong’s Hang Seng and the Singaporean exchange falling more than 3%.
European stock futures point to sharp losses when bourses over here open at 8am GMT. Euro Stoxx 50 futures are down 4.7%, German Dax futures are more than 5% lower and FTSE futures have fallen 3%.
The Agenda
- 7.45am GMT: France consumer confidence
- 11am GMT: CBI retail sales survey
- 1.15pm GMT: Bank of England governor Andrew Bailey speaks
- 1.30pm GMT: US GDP for fourth quarter, second estimate (forecast: 7%)
- 1.30pm GMT: US Initial jobless claims for week of 19 February