Crude futures corrected, as signs of weakness multiplied across markets, as we mentioned yesterday. ICE Brent November contract fell from 80*/b to 77.7 $/b on early Wednesday, as time spreads started to correct as soon as Monday, amid rather loose fundamentals. Indeed, the API survey depicted a grim outlook for US inventories, as crude stocks built by…
The European power spot prices fell back yesterday as forecasts of a sharply rising wind output pressure the market despite expectations of stronger power demand (particularly limiting the losses in France) and weaker solar generation. The day-ahead prices hence averaged 137.85€/MWh in Germany, France, Belgium and the Netherlands, -18.15€/MWh. Pursuing their significant bullish rally started…
European gas spot and near curve prices were up overall yesterday, supported by lower Russian supply and the rise in Asia JKM prices (+11.52% on the spot, to €93.387/MWh, +0.64% for the November 2021 contract, to €85.735/MWh). The rise in year-ahead prices was more moderate as they were pressured by the drop in parity prices…
The US 10-year yield settled above 1.5%, up nearly 25bp over the week. The equity markets finally reacted, with tech stocks suffering the biggest losses (-2.83% for the Nasdaq). Inflationary pressures are not about to end, as evidenced by the surge in German import prices in August: +16.5% yoy, the first time this has happened since the…
The German elections have produced an even closer result than expected. The outcome of the forthcoming negotiations to form a government coalition looks very uncertain. The SPD won by a narrow margin ahead of the CDU-CSU. The Greens and the FPD Liberals are following at a distance (see provisional results here). Of the possible scenarios considered before the elections,…
