Financial News

Stay tuned for our Daily Market Updates – live on your mobile or desktop, 5 days a week, before the European Open.

Energy issues continue to squeeze global economies

Energy issues continue to squeeze global economies

Energy issues continue to squeeze global economies

During the last several weeks, we have seen energy supply dwindle and get squeezed in various parts of the world. Mainland China has seen massive power shortages slow growth in the world’s second-largest economy, which of course will threaten more pain for global supply chains. The Europeans have seen natural gas markets squeeze and slow down growth as well. Russia has shown no signs of hiking exports to the region in October to alleviate the situation.

 

Coal, oil, and natural gas markets have all skyrocketed in the last few weeks, causing massive disruptions with utilities and consumers from China across to the European Union, putting at risk the recovery from the pandemic. The market will continue to cause issues for leaders, who are under pressure to “go green” with energy consumption.

 

The Europeans rely on the Russians for 35% of its gas supplies, and as a result, the lack of gas has seen its benchmark gas price rise more than 350% for the year. A slew of European firms that supply gas or power to households have closed down. The Czech Republic has seen things get so bad that several electricity and gas providers have stopped providing power. There have been roughly a dozen suppliers go under in the United Kingdom. Furthermore, in Asia the Singaporean economy has been hit by three companies exiting the retail electricity market.

Trump SPAC skyrockets

Trump SPAC skyrockets

Digital World Acquisition is the talk of Wall Street this week, as the SPAC acquired the Donald Trump media startup company known as Trump Media and Technology group. The shares jumped 357% on Thursday, followed by a gain of 190% on Friday. The company is supposed to create a new social media network to counter Silicon Valley.

 

The stock has risen as high as $132 level on Friday, giving it a market capitalization of $4.3 billion, not far off of the former presidents estimate of value. Trump has pitched to start up as a rival to liberal media, in an effort to fight back against big tech. It appears that there is huge appetite for this company.

Evergrande makes bond payment

Evergrande makes bond payment

Despite the fact that the Chinese property giant wired funds to make a $83.5 million bond interest payment on Thursday, which was just ahead of the deadline, it appears that there are still a lot of concerns when it comes to the future of the company. As the payment was made, there was hope that bond markets would respond, but quite frankly there are already questions popping up as to whether or not future payments will be made to offshore investors. While the company did make its first payment, the economic future of Evergrande is still highly questionable.

 

This should give a bit of a temporary reprieve to the China financial system contagion fears, but this is still going to be a major headline going forward, and certainly will attract the attention of a lot of news outlets over the next few weeks.

Trade with a Licensed Broker

1market.eu

Licensed by CySEC

Our EU client portal, operated by Exelcius Prime Ltd. under CySEC Regulation, license number 366/18.

1market.com

Our global client portal.

Search

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.