Global markets collapsed in a heap overnight amid rising fears over China and the turmoil in Ukraine.

Wall Street came under heavy early fire after reports emerged of Russian troops expanding their presence on the Ukrainian border.

The troop build-up stoked concerns that the tension between the two nations will spill over into a full blown conflict.

Also weighing on sentiment was China and the nagging fears its economic malaise will spark a credit crunch.

In commodity markets oil held up reasonably well after data showed a surprise drop in weekly US jobless claims and a bigger-than-expected climb in American retail sales last month.

Among the major currencies, the euro fell against the greenback after ECB chief, Mario Draghi, indicated he was prepared to ease monetary policy further to lower the high exchange rate.

There is no major economic data due for release today.

Morning Market Update: Rough Start Ahead is a post from: Australian Stock Report Market Pulse Blog