Russian President Vladimir Putin has given a speech ordering “a special operation in Donbas”:
Russian state media is also confirming. “I have declared a special military operation,” Putin said. Fox News is reporting that Russian forces have entered Ukraine from Crimea.
Putin announced the Russian military action to ‘demilitarize’ Ukraine.” And further he provocatively asserted:
“We decided to launch a special military action […] aimed at demilitarization and denazification of Ukraine”…
The AP is further confirming “President Vladimir Putin says Russia will conduct a military operation in eastern Ukraine.” Putin warned in his televised speech, “A couple of words for those who would be tempted to intervene. Russia will respond immediately and you will have consequences that you never have had before in your history”…
US President Joe Biden has vowed “consequences” On Russia:
“Russia alone is responsible for the death and destruction this attack will bring, and the United States and its Allies and partners will respond…The world will hold Russia accountable,” Biden said in a late evening statement. Biden adds that he will address the crisis, vowing “further consequences” tomorrow..
US equity futures are rapidly extending losses from the day session, down around 2-3% since the close…
This pushes Nasdaq into a bear market.
VIX futures have spiked above 32…
Bitcoin is getting hammered…
Oil is soaring with WTI above $95…
…and Brent tops $100…
US NatGas is spiking back near $5…
And gold topped $1930…
Bonds are also bid with 10Y yields down around 8bps from yesterday’s highs now…
Rate-hike odds are falling significantly. The odds of a 50bps hike in March has dropped to 25% (from 40% earlier) and the odds of 7 rate-hikes by Dec 2022 is now down to 20% from 55% earlier…
Ruble forwards are crashing to new record lows against the dollar…
Russian missiles have reportedly hit locations in Kiev. Check out the below video:
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
