Oil prices broke above $100 a barrel for the first time since 2014, stock markets slumped and the rouble hit a record low on Thursday after Russian President Vladimir Putin launched an invasion of Ukraine.

Markets displayed all the predictable reactions. Europe's , main stock markets opened 2.5%-4% lower and benchmark government bonds, the dollar, Swiss franc, Japanese yen and gold all rallied in a move to safety.

Putin said he had authorised what he called a special military operation and the Ukraine government accused Moscow of launching a full-scale invasion. 

The United States and its allies will impose "severe sanctions" on Russia after the attacks, U.S. President Joe Biden said. Europe's leaders said they would freeze assets and shut Russian banks out of its financial markets. 

Russian and Ukraine markets went in freefall.

The rouble weakened nearly 7% to an unprecedented 86.98 per dollar and there were 10% plus falls on the Moscow stock exchange when it opened after an initial suspension. The Russian central bank then ordered a ban on short selling and over-the-counter markets until further notice.

The equities rout had started with a 2.6% dive for pan-Asian indexes. Europe's STOXX 600 index then fell 2.75% - hitting its lowest since May 2021 and 10% below a January record high.