- European shares cratered on Friday after Russian forces seized Ukraine's biggest nuclear power plant.
- The Stoxx 600 lost almost 3% on the day, while US futures came under pressure.
- Soaring commodities fanned fears of stagflation ahead of the US February jobs report.
Global stocks fell sharply on Friday, after Russian forces captured Ukraine's largest nuclear power plant, battering European shares and fueling another rally in commodity prices.
As Russia's invasion of Ukraine entered its ninth day, the country's army seized the Zaporizhzhya plant, the biggest in Europe.
The European Stoxx 600 fell 2.6%, heading for its biggest weekly loss since March 2020, while London's FTSE and the German DAX plunged 3.1% and the French CAC 40 lost 3.2%.
Reports that Russian shelling on the plant caused a fire triggered fears of a potential nuclear disaster. The fire was eventually contained, but investors remained wary. US stock futures fell on Friday, with those on the S&P 500 falling 0.6%, Dow Jones dipping 0.29%, and the Nasdaq falling 1.56%.
Commodities surged on Friday, as the escalation of war in Ukraine raised the chances of severe disruption to Russian exports of raw materials. Oil returned above $100 a barrel, with Brent crude at $112.69, up 2% and WTI crude at $110.23, up 2.1%. Russia is the world's third biggest oil exporter.
Other major Russian exports, including metals like nickel, palladium and aluminum also soared. Nickel was up 8.33% to $29,139 a ton, a more than 10-year high, while aluminum rose 4.51% to $3,884 a ton. Palladium gained 1.91% to $2,783 an ounce. Wheat also climbed 6.62% to $1209 a bushel, its highest since 2008.
Markets also expect the US February jobs report on Friday, which is expected to show 400,000 workers were added to non-farm payrolls, following January's 467,000 increase, although the data is likely to be overshadowed by fast-moving events in Ukraine, analysts said.
"All eyes remain on the Russia Ukraine war and the unfolding tragedy and acts of barbarity by the aggressor, as such the day's busy calendar of data is rendered largely moot and irrelevant," Marc Ostwald, chief global economist at ADM Investor Services, said in a note.
A key gauge of investor nervousness — the VIX volatility index — rose almost 11%, as stocks fell and commodities rallied.
"The fact we've seen these moves across the major asset classes - both simultaneously and during the Asian session - is very telling. The world is watching to see if things escalate. And this will likely be a key theme heading into the European and US session, to see how world leaders respond," said Matt Simpson, senior market analyst at City Index.