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Stock market: oil and gas weigh on the markets, heavy losses

2022-09-05T14:41:52.311Z


Heavy European stock exchanges in the wake of Gazprom's decision to keep the Nord Stream gas pipeline closed and OPEC + 's decision to cut crude oil production by 100,000 barrels a day. THE STOCK EXCHANGE LIVE The price of gas settles at 251 euros in Amsterdam. Surprise visit by European Council President Michel to Algeria. On Friday, EU ministers will discuss a gas price ceiling. The euro touches an all-time low on the US dollar, then returns above 0.99 (ANSA)


Gas and oil affect the performance of the European markets.

OPEC + has decided to cut oil production by 100,000 barrels per day next month to stabilize the market, thus returning to August levels.

The delegates report this, according to what Bloomberg writes.

European stock exchanges are therefore continuing hard after OPEC + 's decision

to cut oil production by 100,000 barrels per day.

The stoxx 600 area index fell 1.1%.

In sharp decline Frankfurt (-2.5%), Milan (-2.3%), Paris (-1.7%) and Madrid (-1.5%).

Contains the decline in London (-0.4%).

The price lists are affected by cars (-2.4%), IT and banks (-2%).

Utilities are also bad (-1.6%).

The energy equity sector runs (+ 2.3%) with the price of oil rising.

The WTI rose by 3.4% to 89.88 dollars a barrel and the Brent to 96.44 dollars (+ 3.7%).

The price of gas falls compared to the start of the session

.

In Amsterdam

, prices stood at 251 euros per megawatt hour (275 euros at the start of the day)

, an increase of 17.4% compared to the close on Friday.The risk of a European recession, due to an energy shortage during the winter in a context of price rush and monetary tightening, weighs on the euro, which slipped to 0.98 on the dollar, marking new lows since 2002, and then recovering some ground (-0.2% to 0.993) The SME indicators for August are not comforting, with Germany and the Eurozone remaining in a phase of contraction.

Oil rose sharply (+ 2.7% to 89.2 dollars for wti and + 2.9% to 95.7 dollars for brent) in view of the cut in production by OPEC + countries, which intend to defend high prices of crude oil.

Government bonds are also in tension with the BTP-Bund spread that widens by 7 points to 237 and the Italian ten-year yield that grows by 11 points to 3.93%, in a context of generalized sales on Eurozone bonds , ahead of the ECB meeting on Thursday.

In Piazza Affari, Interpump (-4.4%), Pirelli (-3.9%), Campari (-3.7%), Unicredit (-3.6%), Stellantis (3.6%), Tim and Bper (-3.5%) while Tenaris (+ 1.1%) and Eni (+ 0.5%) move against the trend, with energy which - thanks to the oil trend - are the only positive sector in Europe.

The gas war sets the agenda for leaders, from utility bills to nuclear power


The President of the European Council,

Charles Michel, arrived by surprise in Algeria for a working visit.

This was reported by an Algerian government source to ANSA specifying that Michel was received at the "Houari Boumediene" airport in Algiers by Algerian Prime Minister Aymene Ben Abderrahmene and members of his executive.

The EU president is expected to discuss various issues with Algerian officials and senior officials, including President Abdelmadjid Tebboune, including energy and supplying Europe with additional quantities of gas, the source said.

The gas stocks of the European Union have risen in the last week to 81.55%

of the storage capacity.

Data from GIE (Gas Infrastructure Europe) indicate, as of last Saturday, a filling of 85.55% of storage in Germany and 83.74% of those in Italy.

"

We have reached a level of filling in storage which today is around 83.5%,

we still need one billion and two hundred million cubic meters to reach the 90% target ". This was stated by Snam CEO Stefano Venier, during an interview with Rai News 24 on the occasion of Gastech 2022" Obviously , if we manage to fill a little more it will certainly be an additional contribution, not only to security for the winter, but also to have greater flexibility in responding to the volatility of supply from Russia ", added Venier." The data is positive, we had planned to reach a certain level at the end of August and we have achieved it exactly as planned ".

The red mark prevails on the Asian stock exchanges

, which are paying for the effects of the energy crisis and are weighed down by the possible limitation, subject to evaluation by the American administration, of US investments in Chinese technology companies.

Tokyo lost 0.1%, Seoul 0.2% while Sydney closed 0.3% higher.

On the other hand, Hong Kong suffers, down by 1.3%, while Shanghai falls by 0.1% and Shenzhen by 0.7%.

Futures on Europe fell sharply, paying the surge in gas prices (+ 23.4% to 275 euros) triggered by the prolonged closure of Nord Stream: those on Frankfurt lost 2.9%, those on Milan on 2.5% and those in London 2.2%.

In the meantime, the euro touches its twenty-year lows against the dollar, falling below 0.99.



ANSA agency

Iran, we can meet the energy needs of Europe - the World

Iran will be able to help meet Europe's energy needs if the 2015 nuclear pact is relaunched and the sanctions against Tehran are lifted.

(HANDLE)



Source: ansa

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