Jerome Powell, the Fed chairman, repeated more or less word for word what Lael Brainard said previously, but markets expected something more specific pointing to possible intervention to cap the rise in bond yields. So, the US 10y surged higher and remains above 1.56% this morning. The move triggered another sharp downward correction in US…
Lifted by the expectations of colder temperatures, the European power spot prices slightly rose yesterday despite the forecasts of higher wind output and nuclear availability. Prices hence reached 54.13€/MWh on average in Germany, France, Belgium and the Netherlands, +2.37€/MWh day-on-day. The French power consumption eased by 0.76GW on Wednesday to 58.76GW on average. On the…
European spot gas prices were mixed again yesterday, torn between the opposite impacts of lower temperatures and higher LNG supply. Once again, the trend was more clearly bearish for curve prices; this time, the drop was more in line with the drop in parity prices with coal for power generation (following lower EUA and coal…
Brent prompt future contract significantly recovered yesterday, to reach 64.7 $/b. Crude prices were boosted by rumours that OPEC members could roll over the current production cut, which would overly tighten the market, according to our balances. At the same time, the EIA reported a shocking 21 mb crude inventory build, 3 standard deviations away from…
Risk aversion returned on financial markets yesterday, as a key measure of inflation expectations topped 2.5% in the US, which drove bond yields higher. Yet, US economic reports were mixed, but prospects of the vote of the stimulus package by the Senate in the coming days fuel intense debates about its potential risks. In Europe,…
