Looking at markets’ reaction after the ECB meeting, the new forward guidance is a success: the euro is slightly weaker vs the USD (around 1.1770) and bond yields have eased a bit (-2 to 3bp for the Italian 10Y for example). The message was broadly dovish: the ECB will not consider interest rate hike unless it…
The European power spot prices continued to slightly fade yesterday as the forecasts of stronger nuclear, hydro and solar generation offset the expectations of higher power demand and weaker wind output. The day-ahead prices reached 87.70€/MWh on average in Germany, France, Belgium and the Netherlands, -1.93€/MWh day-on-day. The EUAs extended their late rebound from the…
The Brent 1st-nearby price jumped higher from below $69/b to above $72/b, while the WTI posted an even-bigger rebound from around $66.5/b to $70.3/b now. Crude oil prices followed the general trend in risky assets that had declined excessively in the previous days. In the short-term, the oil market remains under-supplied, which should prevent any strong…
European gas prices rebounded yesterday, supported by the increase in oil and Asia JKM prices and technical buying. The rise in parity prices with coal for power generation (both EUA and coal prices were up) also exerted upward pressure. On the pipeline supply side, Russian flows were almost stable at 162 mm cm/day on average…
Concerns about the spread of the Delta variant seem to have significantly diminished suddenly: bond yields rebounded, the US 10y nearing 1.3%. Stock markets were on the rise, sharply in Europe with increases of around 2% on average, and commodity prices rebounded as well, led by oil. The USD weakened logically in this context and…
