Correction amid rising US stocks

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…

After the record came the fall

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…

Prices up on lower Russian flows

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…

Markets adjust to central banks’ new deal

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…

Germany and China in the spotlight

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,…

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