At the beginning of the week, energy was again worth noting, which is a key factor for inflation and thus inflation expectations. The price of electricity in Germany, which is also crucial for the Czech market, rose by another 5 percent, and in the morning it was even more.
Statistics on natural gas reserves in Europe showed their incipient decline, and OPEC + decided to stick to the planned increase in production by 400 kbps. Although it was mostly expected, oil still reacted with a 3% growth, as there was speculation about a faster rise in production.
Inflation expectations, especially the shorter ones contained in bond prices, are rising. Although they still remain at normal levels in recent months, this is a potentially unfavorable factor pushing up bond yields. During today, their growth is not great thanks to the afternoon correction, however, the impact on stocks is known.
US technology stocks in particular are coming under pressure, pushing the Nasdaq down 2.1 percent. The wider S&P 500 is down 1.3 pct so far. Europe started slightly negatively, then even erased the losses mostly, but in the afternoon it is red again under the baton of America. DAX loses 0.6 pct, AEX drops 1 pct, CAC 40 is down 0.4 pct. The FTSE 100 is again at zero when it returns intraday profits.
The Eurodollar gradually moved higher, after which the stopwatch showed the current deterioration in sentiment. The rate is at 1.1620. Gold is advancing slightly , copper is growing decently . The koruna has not remained completely indifferent to the afternoon in the world and is slightly correcting recent gains. It is trading at 25.35 against the euro.
Author: Tomáš Vlk, Patria Finance
