Global stock markets came under pressure this week, after upbeat US economic data fueled expectations that interest rates would remain high for longer, while weak data from Europe and China raised concerns about the health of the global economy.
European stocks record weekly losses…and European natural gas prices rise
European stocks recorded weekly losses, despite their gains on Friday, as a result of investors’ concern about the deteriorating economic outlook and the path of interest rates, at a time when the focus is on the possible move of the Federal Reserve (US Central) next week.
The European STOXX 600 index closed up 0.2%, breaking a series of losses that lasted seven days, but it recorded a decline of 0.8% this week.
Shares of luxury goods giant LVMH rose by 2.2%, the first gain in eight sessions, raising the personal and household goods sector by the highest rate of 1.1%.
The travel and entertainment sector in Europe rose 1.4%, after declining during the previous three sessions.
Global stock markets were under pressure this week, after optimistic US economic data fueled expectations that interest rates would remain high for a longer period, while weak data from Europe and China raised concerns about the health of the global economy.
US inflation figures are due out next week, ahead of a Federal Reserve meeting later this month, and policymakers are widely expected to keep interest rates unchanged.
Read also: “Wall Street Journal”: Europeans are becoming poorer
European gas prices rise
In a separate context, European natural gas prices jumped, as workers at two major Chevron facilities in Australia began partial strikes on Friday, after talks failed to resolve a long-term dispute over wages and conditions, according to Bloomberg.
Benchmark Dutch futures rose as much as 11% to €36.20 per megawatt-hour. The industrial action covers the Gorgon and Wheatstone LNG facilities, which supplied nearly 7% of global LNG last year.
The conflict has rocked the global market since early August, although supplies appear good at the moment.
Given the weak demand, and the fact that stocks in Europe are almost full beyond the targeted levels, traders do not expect a major impact from this dispute.
However, according to Bloomberg, the risk of long-term unrest would lead to continued pressure in a volatile market that has not yet fully recovered from the energy crisis that occurred last year.
While the impact of the strikes may be limited at first, according to analysts, as demand is currently weaker in Europe and Asia, any long-term interruption will threaten supplies, at the height of the winter season in the Northern Hemisphere, and will likely lead to higher prices.
Read also: Germany’s economy disappoints… So what is the situation in France and Spain?
2023-09-08 17:45:14
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