Opening of Markets September 15, 2022 | The SelfBank by Singular Bank blog

  • Day of mixed evolution of the main world indices yesterday, with the European stock markets still reflecting the bad inflation data from the US on Tuesday. For their part, the US stock markets closed in the green, with the S&P 500 advancing 0.34%, the Nasdaq Composite 0.74% and the Dow Jones 0.10%. Thus, the MSCI World closed flat (-0.06%).
  • In the stock markets of the Asia-Pacific region, after closing at the beginning of the week for a holiday in China, Hong Kong and South Korea, today the stock markets show a mixed evolution. The fall of the Shanghai Composite stands out, leaving 1.42%, above the decline of the Korean Kospi 50 (-0.88%). In contrast, Japan’s Nikkei 225 (+0.21%) and Hong Kong’s Hang Seng (+0.15%) advanced.
  • In Europe, the futures of the main indices are also trading in a mixed tone before the opening of the stock market, although with insignificant variations. Compared to the 0.15% rebound recorded by the IBEX 35 futures, the German DAX and the French CAC 40 remain negative, with falls of less than 0.3%.
  • In fixed income, the start of the day in the European sovereign debt markets reflects upward movements in the yields of the main 10-year bonds, continuing with the intense increases in the IRRs at the beginning of the week due to the inflation data in the US . In this sense, the containment that the markets expected in the path of monetary tightening by the Fed has dissipated, which is causing an increase in the yield on 10-year bonds of 3 bp at the beginning of today’s session in the Spanish case, of 5 bp in the Italian bond and 2 bp in the German.
  • Gold, after yesterday’s slight rise, is trading below $1,700 per ounce (-0.59%). For its part, the price of Brent oil remains stable around $94 per barrel, falling slightly by 0.23%. Thus, the negative trend continues, where it continues to trade below the $100 threshold. In the currency market, the euro continues to fall below parity again after losing 0.14%.
  • The VIX volatility index of the S&P 500, after rebounding significantly on the release of inflation data, moderated slightly yesterday, reaching 26.2 points.

Relevant news since the closing of the markets

Wholesale prices pick up in Germany

Wholesale prices grew in August in Germany compared to the previous month by 18.9% year-on-year0.6 pp lower than the increase in July, while in monthly terms they did 0.1% (vs. -0.5% in July). Thus, a slight moderation trendbeing the fourth consecutive month that, in year-on-year terms, wholesale prices have eased.

The price increase was particularly accused in products dairy and fatwhich increased a 2.4% monthlyas opposed to the price of metals and mineralswho were the most fell compared to the previous month (-4.7%).

US shale oil companies will not increase exports to Europe

market opening

Despite market relaxation in recent weeks, with Brent falling below $90 a barrel, Crude oil prices are expected to rebound as a ban on importing Russian crude by sea comes into force at the end of the year and by pipeline from February 2023.

In this context, the executives of the major oil companies shale of the US have warned of their inability to increase the supply of oil and gas to Europe during the next few months. For their part, investors estimate that, in a context of high uncertainty in global crude demand and supply, US oil companies will focus on a model of lower production and higher pricesso they expect greater tension in the European crude market.

This statement comes after a report from the international energy agency (IEA) that forecasts a rebound in crude oil demand compared to last year as global mobility and tourism recovers, although China’s zero covid policy and the slowdown in economic activity in Europe and the US could lower such demand. Also, the IEA estimates an increase in the supply of crude in the face of the normalization of conflicts in producing countries such as Libya and despite the production reduction of 100,000 barrels per day announced by OPECwhich would cause a excess supply close to one million barrels per day in the coming months.

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Opening of Markets September 15, 2022 | The SelfBank by Singular Bank blog