MarketMind: Watch Those Spiral Gas Prices

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Fuel prices are 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 a day before Sujata Rao.

A big week of monetary policy. About 16 central banks met, perhaps with the first rate hike from developed country Norway. It goes without saying that others will soon follow you. For example, the Federal Reserve may prevent rate hikes from going away. Other countries, such as Switzerland and Japan, may remain markedly sluggish.

Meanwhile, the other saga is turning the attention of investors. China’s relentless visit by real estate developer Evergrande plunged Hong Kong shares into default (the mainland market closed), raising Chinese junk bond yields to 14%, the highest in nearly 10 years. ..

So, after a disastrous session on Friday when the S&P 500 hit a nearly one-month low and the VIX volatility gauge hit a one-month high, European and US stock futures fell 1% on Monday. It is definitely risky.

Of course, many extend concerns about economic growth and inflation, debt cap conflicts in Congress, and persistently high COVID cases.

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

Already, they have shut down some power producers and closed their fertilizer plants in the United Kingdom. In regions ranging from slaughterhouses to supermarkets, heating costs are high in winter and the knock-on effect seems inevitable.

Growing pressure on officials – The UK is planning to take steps to protect businesses and consumers, and US manufacturers are calling for slashing liquefied gas (LNG) exports. Politics is coming too – EU lawmakers have demanded that officials investigate Russia’s Gazprom for market manipulation.

UK wholesale gas prices

(Reporting by Sujatha Rao)

MarketMind: Watch Those Spiral Gas Prices

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