A PBS report that Russia plans to invade Ukraine next week has sparked some big moves throughout markets.
WTI crude has shot to a new cycle high at $94.30:
The S&P 500 has dropped 77 points, or 1.6%. Unlike yesterday, this comes with bond yields falling. US 10s are now down 5 basis points to 1.98% as this is more of a safe-haven move.
In the forex market, all the money is rushing into the yen.
Further reports are adding to the fear with the EU evacuating staff from Ukraine and a report that the US is planning to pull observers from the OSCE mission in Ukraine and considering removing more staff from the embassy.
The ruble is getting beaten up and gold is proving to be a winner, rising $30 to the highest since November.
I can't think of a simpler and clearer trade than buying the yen on this, if you believe the invasion is coming. Once it does happen, the big question will be what sanctions hit Russia. I don't believe the EU will agree to oil and gas sanctions, at least not initially.
