Ukraine crisis has financial markets spooked, but not yet despondent | Larry Elliott

Shares dipped and oil prices crept closer to the $100 mark due to fears of invasion and resulting economic sanctions

The threat of a Russian invasion of Ukraine has left financial markets jittery but not yet panicky. Unsurprisingly, shares took a tumble on the world's bourses and there was a brief rise in oil prices to just over $96 a barrel.

Investors were taking few chances and sought out traditional safe havens such as the US dollar, but there was little sense that world war three was about to break out. If anything, financial markets seem to be underestimating the risks.