The reaction of the markets to the Fed’s announcements yesterday says a lot about the extreme nature of their expectations: the Fed increased its Fed funds rate by 50bp and its chairman announced that it would most probably repeat this operation in June and then in July, knowing that it will begin to withdraw liquidity…
The yield on the US 10-year treasury bond hit the 3% mark for the first time since late 2018 ahead of the Fed meeting planned today and tomorrow to raise interest rates further (probably by 50 basis points) to combat soaring inflation and slowing growth. In the UK, the BoE is also expected to raise interest rates…
Oil prices went up yesterday: on NYMEX, WTI front month gained less than 0.1%, ending at $105.17/b. On ICE, Brent price was +0.4% up to settle at $107.58/b. Market reversed at the end of the day, as Brent fell as low as $103.10/b during the session. The main concern was the slowing of the Chinese…
The European power spot prices remained impressively stable yesterday as forecasts of slightly higher French nuclear availability and German wind output offset the stronger demand for electricity expected in the upcoming hours. The day-ahead prices averaged 218.16€/MWh in Germany, France, Belgium and the Netherlands, -0.23€/MWh day-on-day. The power forward and carbon prices both ended the…
European gas prices were down overall yesterday, pressured by the rise in pipeline supply. Indeed, Russian flows were significantly up yesterday, averaging 260 mm cm/day, compared to 223 mm cm/day on Friday. Norwegian flows were also up, to 317 mm cm/day on average, compared to 304 mm cm/day on Friday. Note that the European Commission…
