Economic news

Marketmind: Will the bad news stop?

2022.08.23 08:14

Marketmind: Will the bad news stop?
FILE PHOTO: A shopper pays with a ten Euro bank note at a local market in Nice, France, June 7, 2022. REUTERS/Eric Gaillard

A look at the day ahead in European and global markets from Anshuman Daga

Soaring gas prices, a recession looming over Europe, red-hot inflation and the euro back to near two-decade lows.

It seems like there’s no dearth of bad news in the region, just ahead of key flash purchasing managers index survey data that may show another month of business contraction.

The latest market concerns over runaway gas prices are not entirely new but with Europe facing more cuts in Russian oil and gas exports, the pain can only get worse.

Societe Generale (OTC:SCGLY)’s strategist notes that spot prices are up 70% in a month and six times as high as they were a year ago.

Though this doesn’t translate directly into a big rise in the cost of imported natural gas, the strategist says the impact on Europe’s terms of trade will be devastating if prices stay at current levels for long enough.

The cocktail of negative news has already pulled down the euro to its lowest in two decades, while the pound was hobbled near 2-1/2 year lows.

Meanwhile, just as Sweden readies for elections next month, data showed home prices declined for a fourth straight month in July – more pressure for the minority Social Democrat government, which faces a tight general election in September.

Asian stocks fell to a one-month low after Wall Street stumbled as consensus grew that the Federal Reserve’s gathering later this week in Jackson Hole might reiterate the need for sharp rate hikes to stamp out inflation.

Graphic: Euro zone inflation surges – https://fingfx.thomsonreuters.com/gfx/mkt/jnpwenzmypw/Pasted%20image%201661170928942.png

Key developments that could influence markets on Tuesday:

Economic data: August flash PMIs in euro zone, UK, U.S,; Euro zone flash August consumer confidence and Denmark consumer confidence.

ECB board member Panetta speaks at Bocconi University

Minneapolis Fed President Kashkari appears at a Q&A session

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 98,695.44 1.74%
ethereum
Ethereum (ETH) $ 3,495.19 1.10%
tether
Tether (USDT) $ 1.00 0.06%
xrp
XRP (XRP) $ 2.29 0.76%
bnb
BNB (BNB) $ 710.90 2.39%
solana
Solana (SOL) $ 198.73 2.06%
dogecoin
Dogecoin (DOGE) $ 0.333032 0.23%
usd-coin
USDC (USDC) $ 1.00 0.05%
staked-ether
Lido Staked Ether (STETH) $ 3,493.30 1.68%
cardano
Cardano (ADA) $ 0.919307 1.14%
tron
TRON (TRX) $ 0.257378 0.43%
avalanche-2
Avalanche (AVAX) $ 40.74 1.01%
chainlink
Chainlink (LINK) $ 24.76 0.89%
the-open-network
Toncoin (TON) $ 6.06 5.43%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,137.92 1.11%
shiba-inu
Shiba Inu (SHIB) $ 0.000023 0.08%
sui
Sui (SUI) $ 4.51 3.26%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 98,442.38 1.99%
hedera-hashgraph
Hedera (HBAR) $ 0.311611 4.98%
stellar
Stellar (XLM) $ 0.386488 0.15%
polkadot
Polkadot (DOT) $ 7.52 0.39%
weth
WETH (WETH) $ 3,493.27 1.08%
hyperliquid
Hyperliquid (HYPE) $ 27.98 4.56%
bitcoin-cash
Bitcoin Cash (BCH) $ 466.18 1.45%
leo-token
LEO Token (LEO) $ 9.55 1.24%
uniswap
Uniswap (UNI) $ 14.03 2.62%
litecoin
Litecoin (LTC) $ 109.35 0.34%
bitget-token
Bitget Token (BGB) $ 5.82 18.05%
pepe
Pepe (PEPE) $ 0.000019 0.84%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,686.01 1.32%
near
NEAR Protocol (NEAR) $ 5.53 1.46%
ethena-usde
Ethena USDe (USDE) $ 0.999667 0.12%
aave
Aave (AAVE) $ 373.16 0.71%
internet-computer
Internet Computer (ICP) $ 11.39 2.38%
aptos
Aptos (APT) $ 9.74 0.29%
usds
USDS (USDS) $ 1.00 0.42%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.520526 0.39%
crypto-com-chain
Cronos (CRO) $ 0.159847 2.73%
vechain
VeChain (VET) $ 0.052239 1.44%
mantle
Mantle (MNT) $ 1.25 1.32%
ethereum-classic
Ethereum Classic (ETC) $ 27.62 0.96%
render-token
Render (RENDER) $ 7.61 3.72%
bittensor
Bittensor (TAO) $ 515.40 2.45%
monero
Monero (XMR) $ 196.50 3.14%
mantra-dao
MANTRA (OM) $ 3.81 0.30%
whitebit
WhiteBIT Coin (WBT) $ 24.95 1.63%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.37 2.01%
dai
Dai (DAI) $ 1.00 0.14%
arbitrum
Arbitrum (ARB) $ 0.80804 1.56%
filecoin
Filecoin (FIL) $ 5.38 0.07%