Looking ahead to Europe and global markets from Anshuman Daga
Soaring gas prices, looming recession, blazing inflation and the euro back to near two decade lows.
There appears to be no shortage of bad news in the region, just before key PMI survey data could point to another month of business contraction.
The market’s latest fears of runaway gas prices aren’t entirely new, but the pain will only get worse as Europe faces more cuts to Russia’s oil and gas exports.
Societe Generale (OTC: SCGLY) strategists note that spot prices have risen in a month 70%, six times what it was a year ago.
While this won’t directly translate into a sharp rise in the cost of imported natural gas , the strategist said it would be very important for Europe if prices are in The current level remains long enough and the trade will be devastating.
Negative cocktail news has pulled the euro down to a two-decade low, while the pound hovers around 2-1/2 year lows.
Meanwhile, as Sweden prepares for elections next month, data showed house prices fell for a fourth straight month in July – adding pressure to the minority Social Democratic government, which It faces a tense general election in September.
Asian shares fall to one-month lows after Wall Street as there is growing consensus that the Federal Reserve’s meeting in Jackson Hole later this week is likely to reiterate plans to raise interest rates sharply to curb inflation Necessity, Wall Street tumbled.
Chart: Eurozone inflation soars – https://inew.news/wp-content/uploads/2022/08/localimages/Pasted-2520image-25201661170928942.png
Major developments that may affect the market on Tuesday:
Economic data: Eurozone, UK, US preliminary August PMI; Eurozone consumer confidence index in August and Denmark consumer confidence index.
ECB board member Panetta speaks at Bocconi University
Minneapolis Fed President Cash Cary appears in Q&A session
