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,…
ICE Brent futures were boosted late in the previous session (reaching 77.4 $/b on early Friday) by a jump in inflation expectations, which led to a sharp rally in US treasury yields and equity markets. Indeed, 10-years Treasury yields reached 1.44%, a 13 basis point jump in the span of hours. Buying interest on the WTI and…
Although still largely uncoupled, the power spot prices rebounded yesterday amid forecasts of declining wind and solar output offsetting the expectations of weaker power demand for today and the fading clean gas costs. The German day-ahead prices climbed back above 100€/MWh to reach 108.98€/MWh (+35.82€/MWh day-on-day) while the contracts averaged 152.88€/MWh, +15.56€/MWh from the previous…
European gas spot and near curve prices continued to weaken yesterday, pressured once again by the drop in Asia JKM prices (-2.66% on the spot, to €76.018/MWh, -1.07% for the November 2021 contract, to €77.919/MWh) and profit taking. Prices on the far curve were more resilient, supported by the rise in parity prices with coal…
