European indices are mostly down by over 3% on the day now and we are seeing further bids in bonds – leading to a strengthening in the yen and dollar as well on the session. US futures are also tumbling with S&P 500 futures down 0.8%, Nasdaq futures down 0.9%, and Dow futures down 0.8% as well currently.
Sentiment was on a knife’s edge earlier and we’re seeing it tip over to start European morning trade. If anything else, with tensions still persisting, just be wary that things could still get much uglier than they are now.
The only peculiar move so far has been in oil, which is down slightly on the day but that could also do with some signs of exhaustion after eight weeks of gains. It might take some concrete evidence that oil sanctions may be part and parcel of any war games for oil prices to catch the next leg higher perhaps.
Going back to equities, it’s looking like a bloodbath kind of day. The DAX is moving closer to key support just above 14,800: