Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Marketmind: Another brick in the wall

Published 31/08/2022, 06:07
© Reuters. FILE PHOTO: Pipes at the landfall facilities of the 'Nord Stream 1' gas pipeline are pictured in Lubmin, Germany, March 8, 2022. REUTERS/Hannibal Hanschke

A look at the day ahead in European and global markets from Tom Westbrook

The last Soviet president has died and is to be buried with a Russia he brought closer to Europe at loggerheads once more, and a wall of worry looming over markets and politics.

For the second time in as many months, Russia has shut off gas flow along the Nord Stream pipe to Germany.

Investors seem to be filling in the nervous wait until Saturday morning, when supply is expected to resume after pipeline maintenance, by worrying about interest rates.

Markets are leaning toward 75 basis point rate rises on both sides of the Atlantic next month and have begun taking good economic news badly where it bolsters the case for hikes.

Data out during the day is expected to show European inflation hit record high of 9% in August. Canadian growth figures and partial U.S. labour data are also due.

The euro, for now, is clinging unconvincingly to parity and Europe's gas prices have backed down from record highs, though it is little relief as the cost of gas has tripled since the middle of June.

Asian markets struggled as weak data there is viewed as more straightforwardly bad. China's factory activity extended declines in August. Lockdowns are expanding. The Shanghai Composite hit a four-week low.

Graphic: Russia pipeline gas supplies to Europe - https://graphics.reuters.com/UKRAINE-CRSIS/RUSSIA/movangrozpa/chart.png

Key developments that could influence markets on Wednesday:

© Reuters. FILE PHOTO: Pipes at the landfall facilities of the 'Nord Stream 1' gas pipeline are pictured in Lubmin, Germany, March 8, 2022. REUTERS/Hannibal Hanschke

Economic data: Eurozone inflation, Canadian GDP, U.S. ADP (NASDAQ:ADP) employment

Speakers: Fed's Loretta Mester, Lorie Logan and Raphael Bostic

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.