While September ended with the biggest decline in the US equity market since March, October starts with a sharp fall in Asia, particularly in Japan, despite a rather good BoJ (Tankan) survey. There is no shortage of cause for concern, as we have detailed here. To sum up, we have gone from “reflation trade” to “stagflation risk”,…
The power spot prices fell in Germany, Belgium and the Netherlands, pressured by forecasts of stronger wind and solar generation, and reached 125.50€/MWh on average, -8.10€/MWh day-on-day. Conversely, the colder weather expected in the upcoming hours supported the French power spot prices which rose by 14.99€/MWh to 165.57€/MWh due to the country’s more temperature sensitive…
European gas prices increased strongly yesterday, still supported by supply concerns. Indeed, although Russian flows rebounded slightly yesterday, averaging 287 mm cm/day, compared to 280 mm cm/day on Tuesday, thanks to the slight rebound in Mallnow flows, they were significantly below the 315 mm cm/day of Monday. Norwegian flows were slightly down, to 337 mm…
Crude futures remained supported, at 78.5 $/b, despite rapidly falling time spreads, with front-month ICE Brent time spread now valued at 50 cents, from 80 cents prior in the month. The move was likely due to the rather disappointing EIA data release, where stocks were built by 10 mb in total and more than 4…
The August PMIs confirmed the negative impact of the power cuts on China’s industrial activity in September, with the manufacturing PMI falling below 50 for the first time since the Covid-19 outbreak in February. The sharp rebound in the non-manufacturing index from 47.5 to 53.2, on the other hand, shows that the lifting of key restrictions…
