Russian invasion on Ukraine leads to market selloff

On Thursday, Russia unleashed an all-out land, air, and sea attack on Ukraine, the worst invasion by one country against another in Europe since World War II and validation of the West's worst fears.

The cities of Ukraine were bombarded by Russian missiles. Columns of troops have been reported flowing across Ukraine's borders into the eastern Chernihiv, Kharkiv, and Luhansk regions, as well as landing by water in the southern cities of Odessa and Mariupol.

Early in the morning, explosions could be heard in Kyiv, Ukraine's capital. Gunshots rang out near the city's main airport, as sirens blared throughout the city.

Windows of apartment complexes in Ukraine's second largest city, Kharkiv, the closest significant city to the Russian border, were shaking from frequent blasts, according to a resident. According to the resident, who did not want to be recognized, the city was engulfed in panic as people attempted to evacuate.

Ukraine's President, Volodymur Zelenskiy, claimed that Vladimir Putin's goal was to destabilize his country.

"Putin has just launched a full-scale invasion of Ukraine. Peaceful Ukrainian cities are under strikes," Ukrainian Foreign Minister Dmytro Kuleba said on Twitter. "This is a war of aggression. Ukraine will defend itself and will win. The world can and must stop Putin. The time to act is now."

In an address on national television, President Putin said he ordered "a special military operation" to protect people subject to “genocide” in Ukraine, including Russian citizens. The West has long described the allegation as an illogical propaganda.

"And for this we will strive for the demilitarization and denazification of Ukraine," Putin said. "Russia cannot feel safe, develop, and exist with a constant threat emanating from the territory of modern Ukraine...All responsibility for bloodshed will be on the conscience of the ruling regime in Ukraine.

Putin announced that he had authorized a "special military operation," prompting the Ukrainian authorities to accuse Moscow of starting a full-scale invasion.

Following the strikes, the US and its partners will slap "serious sanctions" on Russia, according to US President Joe Biden. Europe's leaders announced that assets would be frozen and Russian institutions would be barred from accessing the continent's financial markets.

‘Russian invasion leads to market selloff’

Following the Thursday invasion, oil prices On Thursday, oil prices rose above $100 a barrel for the first time since 2014, stock markets fell, and the rouble hit a new low.

On Thursday, investors sought refuge in safe-haven assets as worries of a full-scale Russian invasion of Ukraine grew. Global stock markets continued to fall, the yen strengthened, and U.S. Treasury prices soared.

As one of Europe's greatest post-Cold War security crises in decades intensifies, US Secretary of State Antony Blinken said he fears Russia would invade Ukraine within hours after separatists urged Moscow for help repelling "aggression" on Wednesday and as explosions shook the country.

The crisis escalated this week after Russian President Vladimir Putin ordered soldiers to Ukraine, prompting Western countries to impose sanctions.

Markets exhibited all of the expected reactions. In a bid for safety, Europe's main stock indexes began 2.5 percent to 4% lower, while benchmark government bonds, the dollar, Swiss franc, Japanese yen, and gold all rose.

The markets in Russia and Ukraine have plummeted.

The rouble fell about 7% to an all-time low of 86.98 per dollar, while the Moscow stock exchange dropped 10% or more when it reopened following an initial suspension. Short selling and over-the-counter markets were thereafter banned by the Russian central bank until further notice.

The stock market meltdown began with a 2.6 percent drop in pan-Asian indexes (.MIAP00000PUS). The STOXX 600 index (.STOXX) in Europe then plunged 2.75 percent, to its lowest level since May 2021 and 10% below a January high.

Due to its substantial reliance on Russian energy supplies and the amounts its companies export to Russia, the German DAX (.GDAXI) plummeted 3.7 percent, absorbing the brunt of the sell-off. The rise in oil prices aided in limiting losses on the UK's commodity-heavy FTSE 100 (.FTSE), though it still fell 2.3 percent, and futures markets indicated that Wall Street may follow suit later.

The S&P 500 e-minis were down 2%, while Nasdaq futures were down 2.8 percent, indicating that the tech-focused index is in a 'bear' market if it materializes.

The Dow Jones Industrial Average fell 1.38 percent to just above the threshold that would have signaled a downturn in the US stock market. The MSCI World Index, a prominent indicator of global equity markets, fell to its lowest point since April 2021.

With oil nearing $100 a barrel and the Cboe Volatility Index, dubbed Wall Street's fear gauge, up more than 55 percent in the last nine days, asset markets have seen a sharp surge in volatility.

In early trade, MSCI's broadest index of Asia-Pacific stocks outside Japan lost 1.0 percent, with Australian stocks falling 2.67 percent. The Nikkei 225 was down 1% in Tokyo. Blue chips in China decreased 0.5 percent.

Investors have also been concerned about the possibility of a policy tightening by the US Federal Reserve to tackle rising inflation.