Markets crashed overnight across Asia, Europe and America. Risk assets were sold off, with equities and crypto’s being smashed, while oil surged through US$100/barrel. The safety of the US Dollar was apparent, with the EUR crashing to 1.1165, while the GBP collapsed to trade 1.3370. Putin surprised the Ukrainians and the World by invading the whole of the Ukraine, from North, South and the East. The military assault was utilizing land, air and sea. The Nasdaq and Russell 5000 index are now both trading in official Bear markets.
The war in Europe is no longer a threat, but a reality, with currencies moving to safety currencies. The commodity currencies also suffered, with the AUD falling to 0.7140, while the NZD fell below 0.6650. The war should be over quickly, if NATO and the US do not intervene. US GDP rose sharply, in line with expectations, while the PCE reading of inflation was above expectations.
The Ukraine and the Western response will drive markets into the weekend.