Continues to drop sharply, albeit above morning lows, the session on European stock exchanges, today orphans of Wall Street, which will be closed on Labor Day, as Frankfurt declines by 2.4%, Milan 2.2%, Paris 1.6%, and London 0.7% while the price of gas rises in the wake of Russia’s decision not to reopen Nord Stream. The threat of a European recession, due to a lack of energy during the winter in the context of a price rush and monetary policy tightening, weighs on the euro, which slipped to 0.98 per dollar, hitting new lows since 2002. Then it regains some ground. (-0.2% at 0.993) August SME indexes are not comfortable, with Germany and the Eurozone remaining in the deflationary phase. Gas rose 21.4% to 260.5 euros per megawatt-hour, in a session that fluctuated between 290 and 254 euros, also dragging British gas futures with it (+25.7% to 514 pence). Oil rose sharply (+2.7% to $89.2 for WTI and 2.9% to $95.7 for Brent) in light of potential production cuts by OPEC+ countries that intend to defend higher crude prices. Government bonds are also under tension with the BTP-Bund spread widening by 7 points to 237 and the Italian 10-year yield growing by 11 points to 3.93%, in the context of generalized sales of Eurozone bonds, ahead of the European Central Bank meeting. Thursday. In Piazza Affari, Interpump (-4.4%), Pirelli (-3.9%), Campari (-3.7%), Unicredit (-3.6%), Stellantis (3.6%), Tim and Bper (-3.5%) while Tenaris (+ 1.1%) and Eni (+0.5%) are moving in the opposite direction, with energy which – thanks to the trend of oil – is the only positive sector in Europe.
The gas war defines the leaders’ agenda, from utility bills to nuclear power
President of the European Council, Charles Michel unexpectedly arrived in Algeria on a working visit. An Algerian government source reported to the Algerian news agency ANSA, that Michel was received at the “Houari Boumediene” airport in Algiers by Algerian Prime Minister Ayman Ben Abdelrahman and members of his executive body. The source said that the EU president is expected to discuss various issues with Algerian and senior officials, including President Abdelmadjid Tebboune, including energy and supplying Europe with additional quantities of gas.
EU gas stocks rose over the past week to 81.55%. of storage capacity. GIE (Gas Infrastructure in Europe) data, as of last Saturday, indicates 85.55% of storage is filled in Germany and 83.74% in Italy.
The red mark prevails in the Asian stock markets, which is paying for the effects of the energy crisis and weighed down by the potential limits, subject to the assessment of the US administration, to US investments in Chinese technology companies. Tokyo lost 0.1% and Seoul 0.2% while Sydney closed 0.3% higher. On the other hand, Hong Kong is down 1.3%, Shanghai is down 0.1% and Shenzhen is down 0.7%. Futures in Europe fell sharply, pushing gas prices (+23.4% to €275) caused by the prolonged closure of Nord Stream: futures in Frankfurt lost 2.9%, those in Milan 2.5% and those in London 2.2%. Meanwhile, the euro touched a twenty-year low against the dollar, falling below 0.99. On the day when Wall Street will be closed for Labor Day, investors’ eyes are also on the OPEC+ meeting, which may decide to cut oil production (WTI rises 2.1% to $88.7) in order to support prices.
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