The Toronto stock market headed for a sharply lower open Monday as traders avoided risky assets such as equities in the wake of Russia’s incursion into Ukraine’s Crimean peninsula.

The Canadian dollar fell as investors sought the safe-haven status of the U.S. dollar after Russia took effective control of the Crimean peninsula without firing a shot, calling it a necessary protection for the country’s citizens living there. There are worries that Russia might seek to expand its control by seizing other parts of eastern Ukraine.

The loonie fell 0.27 of a cent to 90.03 cents US.

U.S. futures were sharply lower as traders weighed the potential economic consequences of Russia’s move just ahead of the fifth anniversary of the current bull market and the Dow Jones industrial futures tumbled 129 points to 16,178, the Nasdaq futures dropped 33.8 points to 3,661.5 and the S&P 500 futures fell 17.5 points to 1,840.

Investors also looked ahead to data later in the morning on new vehicle sales and the Institute for Supply Management’s latest gauge on the manufacturing sector.

Oil prices spiked almost $2 a barrel as Russia’s military advance into Ukraine raised fears of economic sanctions against a country that is one of the world’s major energy producers. Natural gas prices also surged at the prospect of a decrease in global supplies.

The April contract in New York jumped $1.93 to US$104.52 a barrel. Natural gas was up by seven cents to $4.68 per 1,000 cubic feet.

Traders seeking safety pushed April bullion up $23.80 to US$1,345.40 an ounce.

May copper lost two cents to US$3.16 a pound. Prices for the metal were also pressured by Chinese data as both the official and HSBC versions of the country’s monthly manufacturing survey showed the sector was weaker last month than in January. The HSBC purchasing managers index fell to 48.5 from 49.5, but was above the preliminary version from last month. The official gauge dipped to an eight-month low of 50.2 for February, off from January’s 50.5.

On the earnings front, Magna International Inc. (TSX:MG) said quarterly net earnings rose 31 per cent from from a year ago to US$458 million or $2.03 as sales jumped 14 per cent from a year earlier to US$9.17. Magna’s adjusted earnings totalled $607 million, up from $387 million a year earlier. The company also raised its quarterly dividend by 19 per cent to 38 cents per share.

Major Drilling Group International Inc. (TSX:MDI) reported a net loss of $12.8 million or 16 cents per share, up from $4.2 million or five cents per share a year earlier. Revenue fell to $71.8 million, down from $123.2 million a year earlier as major customers delayed decisions on their 2014 exploration programs.

European markets were sharply lower as London’s FTSE 100 index lost 1.65 per cent, Frankfurt’s DAX fell 2.77 per cent and the Paris CAC 40 gave back 2.3 per cent.

Russia’s RTS stock index plunged 10.5 per cent and the ruble, already down nearly 10 per cent this year, fell below 50 to the euro for the first time.