Financial Markets Daily Report 06 September 2022
Financial markets started the week on a risk-off mood, as the Russian gas cut off worsened the European energy crisis and the region’s economic outlook.
- Financial markets started the week on a risk-off mood, as the Russian gas cut off worsened the European energy crisis and the region’s economic outlook.
- European stocks slumped and the euro retreated against the dollar.The pound was steady after UK’s Conservative Party named Liz Truss as its leader, clearing her way to become prime minister. US markets were closed.
- European natural gas prices soared to 245 €/MWh after Russia’s Gazprom halted Nord Stream I flows indefinitely. EU could roll out special steps at the end of the week to rein in power costs. Brent prices earned 3% as the OPEC+ agreed to curb its oil production by 100,000 barrels a day in October.
- In the economic calendar, final services PMI will be released today in advance economies, as well as the ISM service survey in the US. Earlier this morning, the Reserve Bank of Australia announced a 50 bp hike in the policy rate.