Gas shortage pushes oil prices to their highest level in three years
The FTSE 100 is expected to jump 0.85 percent to 7,085 points this morning, after a mixed overnight session in Asian stocks that saw Japan’s Nikkei drop early gains while China’s Hang Seng rose.
Meanwhile, the German election ended in deadlock, after a better-than-expected performance by outgoing Chancellor Angela Merkel’s CDU. The center-left SPD party narrowly won the most votes, which means it will likely 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, which means Angela Merkel may have to stay in place a bit longer until what his successor is named, ”said Michael Hewson, chief market analyst at CMC Markets.
“What this means for German policy is that nothing should change much in the short term, with investors’ attention to remain on events in China and Asia more broadly, as well as on the various shortages of gas. ‘supply taking place around the world. “
5 things to start your day
1) Shapps’ plan to let truckers work longer falls flat: Truck industry says policy failed after just one in 1,700 drivers used the program last month
2) Octopus supports 580,000 blocked Avro customers: The energy company now has 3.1 million customers, making it a serious challenger for traditional energy companies
3) FTSE technology listings hit an all-time high since the dot-com bubble: The number of tech companies on the FTSE 350 peaked in 20 years after collapsing shortly after the millennium.
4) Airport hubs are preparing for a peak in unemployment: Crawley and Luton among cities facing a sharp rise in unemployment this week as Britain’s leave program ends.
5) One in four workers want to quit their job: A survey reveals that nearly three in ten workers experience poor well-being at work.
What happened during the night
Asian stocks surged higher on Monday as risk sentiment improved, although a surge in oil prices to three-year highs could stoke inflation fears and worsen the recent hawkish turn by some major central banks .
Oil broke July peaks as global production disruptions forced energy companies to remove large amounts of crude from inventories, while a shortage of natural gas in Europe pushed costs up across the continent .
Brent added an additional 98 cents on Monday to $ 79.07 a barrel, while U.S. crude rose 97 cents to $ 74.95.
The largest MSCI index of Asia-Pacific stocks outside of Japan strengthened 0.5%, although this follows three straight weeks of losses.
Japan’s Nikkei gained 0.4% in hopes of further fiscal stimulus once a new prime minister is chosen. Nasdaq futures rose 0.4% and S&P 500 futures rose 0.5%. Chinese blue chips gained 1.1oc as the country’s central bank pumped more money into the financial system and investors dared to hope Beijing would limit the fallout from ailing China Evergrande group.
- Business : United public services (Commercial update)
- Economy: Durable goods orders (WE)