European equity futures tumbled 3% and the euro fell Monday as the region’s worsening energy crisis added to concerns about a global economy already facing high inflation and a wave of monetary tightening. An Asian equity index was also in the red, paced by losses in Hong Kong, where tech shares slid as traders weighed the risk of curbs on investment from the US. US contracts wavered after the worst week for world shares since June. The dollar jumped as commodity-linked currencies joined the euro’s retreat to a two-decade low. Oil rallied past $88 a barrel before an OPEC+ meeting on supply. Cash Treasuries and US stocks are closed because of Labor Day. Russia’s Gazprom PJSC last week again halted its key European gas pipeline indefinitely after Group of Seven leaders agreed to implement a price cap on Russian oil as the Kremlin continues its war in Ukraine. Natural gas prices are set to test records, and Europe could roll out special steps to rein in power costs. Germany plans a $65 billion package to shield consumers. Monetary authorities including Europe’s central bank are set to keep hiking interest rates this week to fight inflation despite the darkening global economic outlook due to risks such power shortages and China’s Covid curbs. An attendant advance in real yields -- seen as the true cost of money for borrowers -- poses an obstacle to a variety of risk assets. Markets also face more uncertainty from US-China tension. The Biden administration is considering moves to curb US investment in Chinese technology firms and will allow Trump-era merchandise import tariffs to continue while the levies are reviewed. Separately, China extended its lockdown in districts of the megacity Chengdu and ordered more mass testing there as it tries to contain a Covid outbreak. BTC Still trading below $20,000.
Nikkei -0.03% Hang Seng -1.57% CSI -0.67% Shanghai -0.06% Shenzen -0.55%
Eur$ 0.9881 CNH 6.9524 CNY 6.9395 JPY 140.45 GBP 1.1446 CHF 0.9.82 RUB 60.21 TRY 18.2127 WTI$ 88.55 +1.93% Gold 1,712.45 +0.02% BTC 19,705 -0.95% ETH 1,560 -0.65%
S&P +0.06% Nasdaq -0.07% EuroStoxx -3.05% FTSE -1.08% Dax -3.20% SMI -1.88%
Macro :
- *OPEC+ Likely to Freeze Output at Monday Meeting -- Sources -- WSJ
- Scottish Power Plans Split of Gas and Electric Bills, Times Says
- UK Approves Pfizer/BioNTech Bivalent Covid Booster Vaccine
- UK-Japan Nuclear Research Project Gets Government Funding
Keep an eye on :
- AZN LN : AstraZeneca Granted Approval by FDA for Imfinzi for BTC
- BAVA DC : Bavarian Nordic Starts Global Phase 3 Trial of Covid-19 Booster
- BAYN GY : Bayer to Pay $40m to Resolve Claims Tied to 3 Drugs: DOJ
- DHER GY : Delivery Hero Is Poised to Rejoin Germany’s Stock Benchmark
- EDF FP : France Vows Vigilance Over EDF’s Nuclear Reactor Restart Target
- FORTUM FH : Finland to Stabilize Power Market With $10 Billion Program
- FORTUM FH : Nordic Utilities Get $33 Billion Backstops as Power Markets Fray
- HMSO LN : UK Tenants Risk a Wipeout as Energy Crisis Makes Rent Untenable
- HLAG GY : Hapag-Lloyd Set for 16% Drop in Week, Catching Up With Peers
- INGA NA : ING to Book Additional EU75m Provision In 3Q Results
- KORI FP : Distressed Debt Investor Converium Bets on France’s Korian
- OMV AV : OMV Considers Spinning Off Exploration, Production: Presse
- ORNBV FH : Orion Recalls Devisol Salmiakki Dietary Supplement
- SAN FP : Sanofi Proposes Outgoing SocGen CEO Oudea as Non-Exec. Chairman
- URW NA : UK Tenants Risk a Wipeout as Energy Crisis Makes Rent Untenable
- UN01 GY : Nordic Utilities Get $33 Billion Backstops as Power Markets Fray
- VWS DC : Vestas CEO Buys 11,300 Shares at DKK 176.66/Shr
- VOD LN : UK Broadband Prices May Jump More Than 25% if Inflation Persists
- VOW3 GY :Volkswagen Nears Deal to Sell 25% Stake in Porsche Unit to Top