Long-term bond yields have erased most their post Fed-meeting rise yesterday but the rise persists on shorter-term maturities. This reflects expectations that the Fed should tighten its policy sooner than expected and therefore be able to keep inflation under control. The equity market resisted well in this context. US tech stocks even rebounded. The USD…
As expected, the European power spot prices faded yesterday amid forecasts of significant wind and solar output, although the way-above average temperatures maintained a strong power for cooling demand and hence limited the downside potential. The day-ahead prices reached 79.40€/MWh in Germany, France, Belgium and the Netherlands, -7.43€/MWh day-on-day. After a bearish opening, the carbon…
ICE Brent prices approached 75 $/b yesterday after the EIA weekly data release showed further scarcity in the US crude market. Later in the day, crude prices pulled back by the more hawkish than expected Fed meeting which anticipated 2 rate hikes in 2023. Physical markets are increasingly reflecting a tightening balance, as Asian and…
European spot gas prices were mixed yesterday: down in the UK on expectations of higher Norwegian supply from today, up on the continent as significantly above-normal temperatures continued to pull air conditioning demand higher. On the pipeline supply side, Norwegian flows were lower yesterday, at 258 mm cm/day on average, compared to 264 mm cm/day…
The Fed did almost exactly what was expected, but the small surprise made a big difference. Once again, this surprise came from the “Dots”, i.e. the individual Fed members’ rate forecasts. A shift from 2024 to 2023 for the 1st rate hike was expected. But not two rate hikes as soon as 2023. Bond yields…
