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Russia attacks Ukraine, markets tumble, oil surges past $100. Invasion Russian forces attacked targets across Ukraine, prompting internation [View in browser]( [Bloomberg]( Russia attacks Ukraine, markets tumble, oil surges past $100.  Invasion  Russian forces [attacked targets across Ukraine](, prompting international condemnation and threats of [further sanctions](. The government in Kyiv said it is a “full-scale invasion” and called for international support. Moscow said it had taken out military facilities while a senior legislator from the ruling party said the aim was to ensure a new government in Ukraine is [friendly to Russia](. European leaders are meeting later today to discuss what Commission President Ursula von der Leyen called a “package of massive, targeted sanctions.” Risk OFF Equities around the world plunged, with the MOEX Russia Index [collapsing as much as 45%]( and the ruble sinking to a record low. In Europe, the Stoxx 600 Index was 3.6% lower at 5:50 a.m. Eastern Time, while U.S. stock futures pointed to a [significant drop at the open](. In bond markets, European sovereign debt rallied while the yield on the 10-year Treasury dropped below 1.9%. The dollar rose, gold rallied close to $,1950 an ounce and [Bitcoin tumbled](. Commodities Global benchmark Brent crude surged passed $100 to trade [at $105.19 a barrel](, with West Texas Intermediate rising more than 8.5% to $100 a barrel. In metals, aluminum [rallied to a record]( while nickel hit the highest in more than a decade. Crops extended their recent rally with [wheat hitting a fresh nine-year high]( on fears that shipments could be affected. And European natural gas prices surged as much as 41% at the open this morning... Inflation ...All of which means the outlook for inflation just [keeps getting worse](. Crude’s surge [is a double blow]( as it is both inflationary and will dent growth prospects at the same time. For central banks, the rapid rise in prices is going to make an already difficult job even harder. ECB Governing Council member Gabriel Makhlouf said an agreement on a faster wind-down of asset purchases is likely at the March meeting but the prospects for an interest rate hike [are less clear](. Rates traders, meanwhile, are not [bailing on their tightening bets yet]( as they still price six quarter-point hikes from the Federal Reserve, five by the Bank of England and one by the European Central Bank by year-end. Coming up... The second reading of U.S fourth quarter GDP is at 8:30 a.m. Weekly initial jobless claims and the Chicago Fed Activity Index for January are also at that time. U.S. new homes sales data for January is at 10:00 a.m. Kansas City Fed Manufacturing is at 11:00 a.m. U.S. oil inventories numbers are also due at that time. The U.S. sells $50 billion 7-year notes at 1:00 p.m. Richmond Fed President Thomas Barkin, Atlanta Fed President Raphael Bostic, Cleveland Fed President Loretta Mester and San Francisco Fed President Mary Daly all speak later. Alibaba Group Holding Ltd., Dish Network Corp. and Dell Technologies Inc. are among the many companies reporting results. What we've been reading Here's what caught our eye over the last 24 hours. - Odd Lots: The White House’s [Brian Deese on supply chains]( and Biden’s economic agenda. - The $200 billion club [loses last member]( as Elon Musk’s wealth tumbles. - Ex-Goldman Banker’s trial to pause on [U.S. documents blunder](. - Wave of Iranian oil [may flood Asia]( if nuclear deal reached. - China’s yuan [becomes unlikely haven]( as geopolitics roil markets. - Male investors [more skeptical of ESG than women]( in new study. - [Did the dinosaurs die]( on a pleasant North Dakota spring day? And finally, here’s what Ven’s interested in this morning While the reaction in risk assets has been along predictable lines today, market sentiment isn’t likely to be more of the same as the days go by. That’s because traders will move beyond the immediate reality of what’s happening on the ground in Ukraine and start pricing in the actual implications. If anything, Russia’s invasion means that crude prices are likely to stay on the uptrend. And, oh boy, let’s not even talk about what it means for natural-gas prices. If the attack on Ukraine is protracted, we will have an uneasy combination of risk-off geopolitical sentiment and swifter inflation rubbing shoulders uncomfortably against each other. That means the Federal Reserve, the Bank of England -- and to a lesser extent the European Central Bank -- will be undeterred in their efforts to raise rates. In turn, that would mean higher Treasury yields, at least at the front end of the curve, and lower U.S. stocks. That may be a deviation from the script for the markets today. As for currency markets, the dollar should benefit as inflation-adjusted yields are likely to improve much more in the U.S. than elsewhere. Follow Bloomberg's Ven Ram on Twitter [@ven_word]( Like Bloomberg's Five Things? [Subscribe for unlimited access]( to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. Follow Us Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](. You received this message because you are subscribed to Bloomberg's Five Things - Americas newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. 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