Sharp price drop on milder weather and higher LNG supply
European gas prices dropped significantly yesterday, pressured by milder weather, higher LNG supply and profit taking. Prices have even ignored the drop in Russian supply…
The impact of the Fed meeting is still being felt in the markets: inflation expectations have crashed (see the Graph of the day) and bond yields have followed, the US 10y falling below 1.4% overnight. The USD continued to strengthen. The EUR/USD pair plunged below 1.19. In parallel, equities plunged as well. This is the whole reflation trade that seems to be called into question.
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