Dollar, gold, oil skyrocket following the Ukraine-Russia crisis

Russian troops launched a full-scale invasion in Ukraine, which sent stocks and US bond yields plunging as gold and oil prices rocketed higher on Thursday.

As a result of these comments, MSCI's broadest index of Asia-Pacific shares outside Japan plunged more than 3.2%, with Australian shares losing more than 3% and Chinese blue chips losing 1.3%.

Stock markets dive

All major US indices continue to decline below their major support levels. The S&P500 fell below the eight-month low of 4220, which paved the way towards the psychological level of 4000. Dow Jones broke a major support at 3313, dropping to 31921.

Ahead of market opening, European indices are testing their critical support. FTSE100 extended losses towards 7233, which lines up with 200-day EMA. A decisive break below this level would lead to lower support levels of around 7100 and 7000, respectively.

Major currencies suffer stronger dollar

All majors are weighed down by the rising dollar in FX markets. Safe-haven currencies are in demand, while the euro and commodity currencies are falling. Euro hit 1.12. Sterling is trading on the lower edge of its triangle pattern. While the safe-haven yen has strengthened against the dollar. As reality might be worsening on the ground, the fear rally is expected to expand. 

Gold broke above significant resistances

Gold is surging through the roof, extending its upside break towards $1,950, as risk-aversion remains at full steam.

 As a result of Russia's announcement of a special military operation into Ukraine, Brent oil has climbed to $100. On fears that the United States and Europe would impose sanctions on Russia's energy sector, prices have risen more than $20 a barrel since the start of 2022. Russia is the world's second-largest oil producer, whose crude is mainly sold to European refineries. It is also the largest natural gas supplier to Europe, accounting for about 35% of European demand.

Events of today

On the calendar, investors await Bank of England (BOE) Governor Andrew Bailey's speech on Thursday. A hawkish tone can support the pound, which has been consolidating on the verge of its 50-day EMA. 

US initial jobless claims and new home sales are also due on Thursday, and GDP growth for the quarter. The decreasing number of jobless claims can be interpreted as solid employment, supporting the Federal Reserve rate hike beginning in March.

Before the release of Thursday's government data from EIA, analysts had forecast a build of 400,000 barrels of crude and a drawdown of fuel stocks. The American Petroleum Institute reported late Tuesday that US crude stockpiles rose 6 million barrels last week while distillate stocks fell.