Oil heads for $ 80 as energy crisis intensifies

GRAMGood Morning.

The FTSE 100 is forecast to jump 0.85 percent to 7,085 points this morning, following a mixed overnight session in Asian stocks in which Japan’s Nikkei gave up early gains while China’s Hang Seng rose.

Meanwhile, the German elections ended in a stalemate, after a better-than-expected performance by the CDU of outgoing Chancellor Angela Merkel. The center-left SPD party narrowly won the most votes, meaning they are likely to try to lead a tripartite coalition alongside the Greens and another party.

“It would be unexpected if we had a new government before Christmas, given that the last one took until February 2018 to focus on some kind of focus, which means that Angela Merkel may have to stay in place for a while longer until her successor is named, “said CMC Markets chief market analyst Michael Hewson.

“What this means for German politics is that not much is likely to change anytime soon, and investors’ attention is likely to remain on events in China and Asia in general, as well as the various supply crises. that take place all over the world. “

5 things to start the day

1) Shapps’ plan to allow truckers to work longer hours fails: The heavy-duty vehicle industry says the policy has failed after only one in 1,700 drivers used the scheme last month.

2) Octopus Acquires 580,000 Stranded Avro Customers: The energy company now has 3.1 million customers, making it a serious challenge for traditional energy companies.

3) FTSE technology listings hit an all-time high since the dot-com bubble: The number of tech companies in the FTSE 350 has reached a 20-year high after collapsing shortly after the millennium.

4) Airport centers prepared for a peak of unemployment: Crawley and Luton among cities facing a sharp rise in unemployment this week as Britain’s licensing scheme comes to an end.

5) One in four workers wants to quit their jobs: The survey finds that nearly three in 10 workers experience poor well-being at work.

What happened overnight

Asian stocks rose on Monday as risk sentiment improved, although a rise in oil prices to three-year highs could inflame inflation fears and exacerbate the recent aggressive turn by some of the major central banks.

Oil surpassed its July peaks when global production disruptions forced energy companies to withdraw large amounts of crude from inventories, while natural gas shortages in Europe pushed up costs across the continent.

Brent added another 98 cents Monday to $ 79.07 a barrel, while US crude rose 97 cents to $ 74.95.

MSCI’s broader Asia-Pacific equity index outside of Japan affirmed at 0.5%, although that followed three consecutive weeks of losses.

Japan’s Nikkei gained 0.4% on hopes of more fiscal stimulus once a new prime minister is elected. Nasdaq futures rose 0.4% and S&P 500 futures 0.5%. China’s blue chips rose 1.1% as the country’s central bank injected more money into the financial system and investors dared to hope that Beijing would limit the fallout from the troubled China Evergrande Group.

Going up today

  • Corporate: United Utilities (Commercial update)
  • Economic Sciences: Durable Goods Orders (U.S)

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