Unsurprisingly, the Fed announced yesterday the start of the reduction of its asset purchases. We already commented on this decision last night (here). Since then, it is confirmed that the markets have welcomed it, with the US main stock market indices reaching new records. The yield curve has steepened a bit (bond yields have risen more…
Amid unchanged fundamentals, European gas prices rebounded yesterday, supported by technical buying after the previous sessions’ strong losses. Asia JKM prices (-7.74%, to €76.771/MWh, on the spot; +5.74%, to €90.793/MWh, for the December 2021 contract) and parity prices with coal for power generation (up as both coal and EUA prices were higher) sent mixed signals.…
Crude markets remained supported, ahead of the OPEC+ meeting, despite inventory builds reported by the API survey. Indeed, crude inventories grew by 3.6 mb, while Cushing stocks were seen down by 0.8 mb, explaining why WTI’s backwardation remained elevated compared to the ICE Brent backwardation. On a global scale, total inventories are seen to have contradictory…
The European power spot prices slightly faded yesterday, possibly weighted by the rising French nuclear availability and hydro generation offsetting the forecasts of lower wind and solar output and higher power demand. The day-ahead prices averaged 186.83€/MWh in Germany, France, Belgium and the Netherlands, -17.21€/MWh day-on-day but nonetheless +17.00€/MWh from the previous week due to…
There was little significant movement in the financial markets, although equities continued to rise, with the CAC 40 breaking its record high from the internet bubble in 2000. The outcome of the Fed meeting is eagerly awaited (7pm CET), although it should come as no great surprise: the Fed is expected to announce that it is starting…
