It’s paradoxical but the poor US jobs report has brought inflationary fears back to the forefront of market concerns. The Nasdaq plunged by 2.6% yesterday on worries about the consequences of higher interest rates on expensive stocks’ valuation. Market measures of inflation expectations or surveys all reflect these fears, but the bond market stays calm,…
Forecasts of warmer temperatures and stronger solar production pressured the European power spot prices for today, although the expectations of slightly weaker wind generation and French nuclear availability limited the losses. Prices reached 57.91€/MWh on average in Germany, France, Belgium and the Netherlands, -13.65€/MWh from Friday. Lifted by strong speculative buying, soaring equities and a…
ICE Brent prompt prices were supported at 68.8 $/b by a rapidly weakening dollar and the shut down of the US colonial pipeline on Friday evening, which transports about 2.5 mb/d of petroleum products through the US from the Gulf Coast to the East Coast. Tankers were already being chartered as soon as Saturday to…
European gas prices increased again yesterday, both on the spot and the curve. Prices continued to receive support from above-normal demand and weak pipeline supply, which tighten the gas systems and maintain net storage injections at relatively low levels. The rise in Asia JKM prices and in parity prices with coal for power generation (both…
The EUR/USD exchange rate is trading at its highest level since early February, above 1.2150, after US job creation came out much lower than expected in April: +266k vs 1 million. The equity market welcomed the figures, while bond yields edged up, in line with inflation expectations. Why? Because they validate the Fed’s accommodative stance.…
