Inflation scares the stock markets, Europe closes in red. Putin cools the gas rush

Among the main European stocks, expensive energy penalized Saint Gobain in Paris: the stocks left 1% on the ground after the group announced an upward revision of the estimates of energy and raw materials costs for the whole 2021. The decline in oil stocks involved Vallourec (-9.86%), Cgg (-7.66%), TechnipFmc (-4.85%) and Total (-1.37%), while Pernod gained ground Ricard (+ 1.48%) and Carrefour (+ 0.95%). In Frankfurt, the Adler real estate group plunged 25.93% after supervisory authority Bafin stressed that it “takes seriously” the allegations of fraud against the company. Car stocks bad: BMW lost 2.51%, Volkswagen 2.75% and Porsche 3.56%. In London, Tesco bucked the trend by 5.95% after announcing a robust first half, raising its targets for the year and launching a share buy back program.

Natural gas, prices down after record to 130 euros

As mentioned, the price of natural gas has reversed course, down 7% after the recent rally. Previously, the spot contract on the Dutch market TTF, one of the largest and most liquid in continental Europe, had reached 130 euros per megawatt / hour (MWH), a level never reached before. The contract front-month for November it grew by more than 400% since the beginning of the year. A race to which “the rumors according to which China has ordered LNG importers to increase orders to resolve the crisis” also contributed, say experts from MPS Capital Services. “At the same time, in Europe the number of companies forced to cut production due to the high prices of gas, coal and electricity, with many companies starting to fear the hypothesis of an electric rationing. Meanwhile – the analysts add – the EU Commissioner for energy, Simson, said that the levels of stocks are below the average of the last 10 years, but adequate to face the winter ».

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Purchases on the dollar continue, with the euro below 1.16

On the foreign exchange market, the super dollar presses towards 1.15 for one euro: the single European currency fell to 1.1534 dollars from 1.1604 yesterday at the close. One euro is also worth 128.48 yen (129.35 yesterday), while the dollar / yen ratio is at 111.37 (111.46). Oil, as mentioned, down from the highs, thanks to the higher-than-expected growth of US reserves: the November future on the WTI drops 1.69% to 77.60 dollars a barrel, while the December delivery on Brent slips by 1.57 % at $ 81.26.

On bonds, closing higher for spread BTp / Bund. The differential of
yield between the ten-year benchmark BTp and the same German maturity scored a last position at 106 basis points, up from 104 points at the closing of
Tuesday. On the rise the yield of the Italian ten-year BTp, which rises at the end to 0.89% from 0.86% of the reference on the eve of the day.

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