Marketmind: Watch These Spiraling Gas Prices


Fuel prices will be displayed at a gas station on Copacabana Beach in Rio de Janeiro, Brazil on September 2, 2021. REUTERS / Richard Moraes / Files

September 20, 2021

Watch the day before from Sujatarao.

A big week of monetary policy. About 16 central banks met, possibly with the first rate hike in developed country Norway. It goes without saying that others will follow you soon. For example, the Federal Reserve could prevent the rate hike itself from being far away. Other countries, such as Switzerland and Japan, can remain categorically accommodating.

Meanwhile, other sagas are gaining the attention of investors. Chinese real estate developer Evergrande’s relentless journey to default plunged Hong Kong (closed mainland market) stocks, pushing Chinese junk bond yields to 14%, the highest in nearly 10 years. ..

So after a disastrous session on Friday when the S&P 500 plunged to a nearly a month low and the VIX volatility gauge hit a one month high, European and US equity futures fell by 1% Monday. It’s definitely a risk.

Of course, many extend to concerns about economic growth and inflation, debt ceiling disputes in Congress, and still high COVID cases.

This leads to another problem of the day: rising gasoline prices and the potential impact on inflation.

They have already shut down some power producers and shut down their fertilizer factories in the UK. In the sector from slaughterhouses to supermarkets, heating costs in winter are high and the ripple effect seems inevitable.

Growing pressure on authorities – UK is planning measures to protect businesses and consumers, and US manufacturers are calling for reduced exports of liquid gas (LNG). Politics are also coming – EU parliamentarians have called on authorities to investigate Russian company Gazprom for market manipulation.

UK Wholesale Gas Prices Soar https://graphics.reuters.com/GLOBAL-GAS/jnvweyxqmvw/chart.png

(Report by Sujata Rao)

Marketmind: Watch These Spiraling Gas Prices

Marketmind Source Link: Watch These Spiraling Gas Prices

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