The latest Fed meeting did not surprise market consensus and implied market rates. Indeed, on many aspects, bond yields and interest rate futures were in sync with the Fed’s assessment of the inflation situation in the US and abroad. In this meeting, Fed members maintained the target rate unchanged. It was decided that the pace…
Except in France where they rose by 16€/MWh, the European power spot prices were mostly stable yesterday as the forecasts of stronger renewable and nuclear production offset the higher gas prices. The day-ahead prices averaged 302.57€/MWh in Germany, France, Belgium and the Netherlands, +0.26€/MWh day-on-day. Ignoring the firmer gas prices, the EUAs continued to drop…
European gas prices maintained their strong uptrend yesterday, still supported by tight domestic fundamentals, while competition with Asia for LNG supply does not show yet strong and decisive signs of weakening. Indeed, Asia JKM prices were up by 1.15% on the spot, to €118.372/MWh, and by 6.33% for the February 2022 contract, to €127.566/MWh. On the…
The Fed meeting today is clouding all other market events, as inflation pressures have now been acknowledged by Powell and most US central bankers. Indeed, as US CPI and PPI continued to soar, the market anticipates a rise in target rate by May/June according to Fed rate futures. The most likely path in our view…
Front-month time spreads flipped in shallow contango for the first time since Q4 2020, a worrying sign that conflicts with the fundamental data we are collecting, whether it is in inventories or demand data. Indeed, satellite data shows a continued decline in onshore inventories (-10 mb for the first 15 days of December according to Kayyros),…
