EnergyScan

Markets very nervous before the Fed

Another stock market session marked by very high volatility yesterday. US stocks repeated Monday’s pattern (plunge then rebound), but ended up falling back. The Nasdaq gave up another 2.3% and is down 15.6% from its peak. The S&P500 is down 8.6% since the beginning of the year. Long term rates remain stable but the US 10 year has also been yo-yoing during the session.

Markets are nervous with Russia and ahead of the Fed meeting today. Growth concerns are on the rise. The IMF has significantly revised its forecasts downwards (see our News) and US household confidence is deteriorating: they expect a little less inflation, but their income outlook is falling even more.

Energyscan economics news

Today, the Fed meeting will be the focus of attention. It is possible that Jerome Powell will succeed in calming the markets and provoke a rebound in risky assets, but the underlying trend is not reassuring, particularly given the planned reduction in liquidity in the markets (see our Report published yesterday on the issues and prospects of US monetary policy for more details). Earlier, the Bank of Canada may have raised its key rate from 0.25% to 0.50%; opinions are divided. Volatility guaranteed in the markets.

Share this news :
Share on twitter
Share on linkedin
Share on email

You might also read :

ES-power
March 25, 2022

EUA clawed back losses amid low liquidity

The European power spot prices inched up yesterday as the expectations of lower French nuclear availability offset the forecasts of stronger wind output and weaker…
ES-gas
December 10, 2021

Downward correction in Europe

European gas prices weakened yesterday, pressured by the rebound in Norwegian flows, which were back to normal, reaching 351 mm cm/day on average, compared to…
ES-gas
June 24, 2021

Global gas prices move further north

Bulls kept control of European and Asian gas markets on Wednesday, pushing TTF and JKM benchmarks to new highs once again amid multiple supply outages…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Don’t have an account yet?  Sign up here!

[booked-calendar]