European stocks tumbled on Thursday. The FTSE 100 fell 3.3 per cent in London, while France’s CAC 40 dropped 4.1 per cent and Germany’s DAX 30 shed 4.5 per cent. Russian stocks crashed, with the country’s main index dropping 45 per cent before recovering some losses.

US stocks fell sharply at the open. The Nasdaq Composite declined 3.3 per cent, pushing the index into bear market territory. The Dow sank 2.5 per cent, or more than 830 points. The S&P 500 fell 2.6 per cent.

In Asia, Hong Kong’s Hang Seng Index (HSI) dropped 3.2 per cent, its biggest daily loss in five months. Japan’s Nikkei 225 (N225) lost 1.8 per cent and China’s Shanghai Composite moved 1.7 per cent lower.

The pain spread beyond stocks. The Russian rubble briefly crashed about 10 per cent to a record low of 90 against the US dollar.

Brent crude, the world benchmark, topped $100 a barrel for the first time since 2014 on its way to $103 per barrel. US crude jumped 5.2 per cent to $97.33 a barrel.

A broad offensive by Russian forces targeted military infrastructure across Ukraine as well as several airports. The assault began hours before dawn and quickly spread across central and eastern Ukraine as Russian forces attacked from three sides. Putin warned of bloodshed unless Ukrainian forces lay down their arms.

“The world is shocked as Russia launches a major military offensive against Ukraine,” analysts for ING wrote Thursday in a research note. “Financial markets are predictably witnessing a flight to safety and may have to price in slower growth on the further spike in energy prices,” they added.

Investors will watch for the West’s response to Russia’s aggression, which is likely to include punishing sanctions.

“The question will then be which Russian financial institutions are targeted for severe financial sanctions,” the ING analysts said.