Stockpiling for winter
Today's news headlines:
'Gas markets leap on both sides of the Atlantic as traders search for supplies'. Following Russia's throttling of natural gas supplies in retaliation for the western governments' support for Ukraine, traders are being forced to stockpile supplies ahead of the winter. This week, gas markets in Europe have jumped 14%, with a 6% increase yesterday to €236 per megawatt hour, representing a doubling in prices since the June highs. As gas prices sit at over ten times their normal level, Eurozone governments are exploring options of rations and subsidies for consumers; this price increase threatens to place some of the world's largest economies into a recession. (Financial Times)
'US and Taiwan to hold trade talks amid China tensions'. Following Taiwan's recent hosting of House Speaker Nancy Pelosi and the subsequent Beijing military operations surrounding the East Asian island, the US and Taiwanese governments have agreed to commence formal trade and investment talks. The discussions are anticipated to start in early autumn to increase economic activity in agriculture, digital trade, climate, and other sectors as relations between Washington and Beijing become increasingly inflamed. US trade talks with Taiwan are expected to further heighten tensions with China, which is accusing Washington of abandoning its 'one China' policy under which the US recognises that Taiwan is a part of China and acknowledges Beijing as the single government of China. (Financial Times)
US stocks are marginally down this morning as tensions with China heighten, and heads turn to the weekly US unemployment data being released later in the day. The Hang Seng and Nikkei also fell by around a percent overnight, and Brent oil has fallen further to a little over $93 per barrel.
Australian Unemployment Rate: 3.4% vs 3.5% previously
Eurozone Final CPI y/y: 10:00AM
US Philly Fed Manufacturing Index: 1:30PM
US Unemployment Claims: 1:30PM
Canadian Producer Price Index m/m and Raw Materials Price Index m/m: 1:30PM
US FOMC Member Esther George speaks: 6:20PM
US FOMC Member Neel Kashkari speaks: 6:45PM
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*Indicative interbank rates taken on the day of writing. Please speak to your Dealer to find out the current rates available for you.