MILANO – A declining start for the European markets, still conditioned as for yesterday’s session by the energy crisis on the one hand and by the wait for the ECB Governing Council on the other. Analysts seem to agree in hypothesizing a rise of 75 basis points, after 50 in July, the first in 11 years, but within the board the clashes between doves and hawks would still be on, that is, between those who judge such a massive rise a risk for the European economy and those who consider it appropriate to counter the growth of inflation. Same fears looking at the Fed’s next moves, with the latest market indications suggesting a further 75-point hike at the next FOMC meeting on 21 September.
Weak session on the other hand for the Asian stock exchanges, where, however, the Chinese lists hold. Concerns about the strengthening dollar, which puts pressure on euro area currencies starting with the yen, and rising interest rates globally pushed the MSCI Asia Pacific index down 1.7% to the year. lows since May 2020 with most sectors in the red starting from technology, Tokyo declining, with the Nikkei ending at -0.7%.
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Gas growing in Amsterdam
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Departure in decline for the European stock exchanges
Gas growing in Amsterdam
Price of gas futures rising at the Dutch hub in Amsterdam. The quotation on the TTF is up by 0.90% compared to yesterday’s closing, with the price of gas standing at 242 euros per megawatt hour.
The dollar has been at its highest against the yen in 24 years
The dollar hit a 24-year high against the yen, at 143.9, after US economic data reinforced the view that the Federal Reserve will continue to tighten monetary policy. The Chinese yuan fell to a two-year low, approaching the psychological threshold of 7 yuan per one dollar despite the authorities’ steps to stem its decline.
The euro is up slightly but not far from yesterday’s 20-year lows, well below par, as EU ministers prepare to meet on Friday to discuss the energy crisis. The single currency changes hands at 0.9909 dollars (+ 0.06%) and at 142.69 yen (+ 0.9%).
Departure in decline for the European stock exchanges
Departure down for all the main European indices: Piazza Affari lost 0.81%. Frankfurt’s Dax is down 0.80%, and the Cac 40 is down 0.43%. The London market sees the Ftse 100 fall by 0.85%.
Braking of Chinese exports
In August, China experienced a sharp slowdown in both exports and imports. The Asian giant’s economy is damaged by the anti-Covid measures still in force in part of the country. Sales abroad grew by 7.1% in August over a year while imports registered a modest + 0.3%.
Oil returns to January levels, weighing on the Chinese lockdown
The growing signs of a slowdown in the world economy and a recession in some countries, the strengthening of the dollar and the new heavy lockdowns in China due to Covid, are affecting oil prices. Texas WTI crude fell 1.69% to $ 85 a barrel, returning to January levels. The North Sea Brent marks a decrease of 1.31% to 91.52 dollars