The decision was expected: the Fed raised its Fed funds rate by 25bp. It will also soon start draining liquidity from the market. It has significantly revised down its growth forecasts and even more revised up its inflation forecasts. The Fed members also validate the markets’ very aggressive rate forecasts, i.e. the equivalent of another 6…
The European power spot prices eased yesterday as the electricity consumption is expected to further fade today amid warmer temperatures while the wind, solar and hydro generation are all forecasted to rise. The day-ahead prices averaged 267.21€/MWh in Germany, France, Belgium and the Netherlands, -22.30€/MWh day-on-day. The carbon prices edged down on Tuesday, slightly weighed…
Brent 1st-nearby prices traded to their lowest level since late February at $97.44/b in another volatile trading session on Tuesday, mainly pressured by demand-side concerns on the back of mounting lockdown measures due to a Covid-19 resurgence in China. The OPEC underlined “the slowdown of economic growth” with “rising inflation and the ongoing geopolitical turmoil that…
Stagflationary risks continued to cloud the European economic horizon on Tuesday with growing concerns over the impact of a potential ECB monetary policy tightening on the EU GDP growth. The ZEW index, which measures investor expectations for the German economy, plunged from 54.3 in February to minus 39.3 in March, close to the all-time low of…
European gas prices were mixed yesterday as the drop in Russian supply came to remind that the fundamental situation remains fragile. Indeed, Russian flows dropped to 252 mm cm/day on average yesterday, compared to 273 mm cm/day on Monday, mainly because of the halt in Yamal flows through Poland. By contrast, Norwegian flows were up,…
