Crude jumps, stocks slip, rouble crashes to record low on tough Russian sanctions

Crude oil jumped while the rouble plunged nearly 30% to a record low on Monday after Western nations imposed tough new sanctions on Russia for its invasion of Ukraine, including blocking some banks from the SWIFT global payments system.

Safe-haven demand boosted bonds along with the dollar and yen while the euro sank after Russian President Vladimir Putin put nuclear-armed forces on high alert on Sunday, the fourth day of the biggest assault on a European state since World War Two. Read full story

The ramp-up in tensions heightened fears that oil supplies from the world's second-largest producer could be disrupted, sending Brent crude LCOc1 futures up $4.21 or 4.3% to $102.14. US West Texas Intermediate (WTI) crude CLc1 futures were up $4.58 or 5.0% at $96.17 a barrel.

"I am telling clients all we know for certain is that energy prices are going to be higher, and there are going to be some beneficiaries," said John Milroy, Ord Minnett financial advisor in Sydney.

"It's an old cliché, but it's true that uncertainty drives moves in both directions."

Asia-Pacific shares turned lower after spending the morning session mostly in the green, putting them in line with declines for US and European stock futures.

Japan's Nikkei 225 .N225 fell 0.25%, while Chinese blue chips .CSI300 slipped 0.36%. Australia's benchmark .AXJO, though, added 0.64%, boosted by energy shares.

MSCI's index of regional stocks .MIAP00000PUS lost 0.58%.

US emini stock futures EScv1 were pointing to a 2.35% drop at the restart, while pan-European EURO STOXX 50 futures STXEc1 slid 3.90%. FTSE futures FFIc1 declined 1.21%.

"We had a deluge of very negative information over the weekend," said Kyle Rodda, a market analyst at IG Australia. "We're talking about financial stability risks, and sprinkle over that the threat of nuclear war."

"Volatility is heightened," he said. "Price action is incredibly choppy."

The 10-year US Treasury yield US10YT=RR fell about 9 basis points to 1.89%, and equivalent Australian yields AU10YT=RR retreated about 6 basis points to 2.177%.

The euro EUR=EBS slid 1.1% to $1.11465 and 1.1% to 128.785 yen EURJPY=EBS, while the risk-sensitive Australian AUD=D3 and New Zealand dollars NZD=D3 sank 0.78% and 0.88%, respectively.

The rouble RUB=EBS dived as much as 29.67% to a record-low 119.5 per dollar.

Gold XAU= rose more than 1% to around $1,909 on demand for the safest assets.

"This volatility will go on for a while yet, until the dust settles," said Shane Oliver, chief economist at AMP Capital.

In the meantime, "markets are going to be swinging from headline to headline," he said.