European gas prices dropped again on Friday, pressured by still-comfortable spot fundamentals, as storages show (they switched to net injection mode since 22 March). In particular, Russian flows were up on Friday, averaging 245 mm cm/day, compared to 236 mm cm/day on Thursday. Norwegian flows were almost stable, averaging 323 mm cm/day, compared to 322…
The weakening French nuclear production, ongoing wind shortage and high gas prices maintained the European power spot prices above 200€/MWh for today. The day-ahead prices indeed averaged 228.32€/MWh in Germany, France, Belgium and the Netherlands, -22.00€/MWh from Friday but +7.06€/MWh week-on-week. The carbon prices traded rangebound in a narrow range in another illiquid session on…
The price of Brent 1st-nearby fell back to around $116b after ending the week at around $120/b. The main reason for this decline comes from China where the rapid spread of the Covid epidemic will lead the authorities to impose containment measures in Shanghai, in order to carry out a large-scale testing of the population. Although these…
The markets are now assuming the equivalent of almost 9 25bp rate hikes by the Fed by the end of the year, i.e. out of the 6 remaining meetings, 3 would see the Fed raise rates by 50bp. The extraordinary (because it really is an extreme scenario from a historical point of view) has become…
Who could have predicted such a phenomenon? Bond yields continue to rise sharply: the US 10-year has reached 2.4%. The 2-year rate is already at 2.2%, an increase of 200bp over the last 6 months and 150bp since the beginning of the year! The euro zone is not left behind, even if the prospects for monetary…
