On the edge

Many equity markets have just recorded their best week since 2020 with gains of around 6%. The “fear index”, the VIX, has fallen back below the level it was at before the start of the Russian offensive in Ukraine, long rates are at their highest levels for nearly 3 years in the United States, 4 in the euro zone, the price of gold and the US dollar are clearly down from their recent peaks (the EUR/USD exchange rate is around 1.1050).

Meanwhile in Ukraine, the inhabitants of the city of Mariupol are refusing to lay down their arms to the Russian army and the fighting is more violent than ever. Oil prices are rising sharply, China is struggling with the pandemic and the real estate crisis, and European industry is facing growing shortages that are certain to slow production significantly.

The economic calendar is not likely to hold the markets’ attention at the beginning of this week. They should therefore focus more than ever on the consequences of the war and in this case, a reversal of the trend would seem logical.

Share this news :

You might also read :

April 1, 2022

Sharp decline in crude oil prices

As we reported yesterday morning, the Biden Administration has announced that it will draw on its strategic reserves in a colossal way, as nearly 1mb/d of…
March 23, 2022

Slight price increase

European gas prices rebounded slightly yesterday, still torn between improving stock levels and some concerns on future supply. They received support from  the strong drop…
March 3, 2021

European gas prices mixed yesterday

With unchanged fundamentals (temperatures are expected to drop gradually, falling briefly below normal during the weekend), European spot gas prices were mixed yesterday. The trend…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Don’t have an account yet?