2022-09-05

Wrap

US markets were (largely) shut today, so market reaction was muted. WTI futures were traded, although there was no volume beyond the nearby contract (as far as I can tell), and it went up quite a bit. Putin seems to have decided to turn off Nordstream 1 entirely, in response to the sanctions and ‘price cap’ that has been imposed by the G7. The pain this winter is going to be real, but equity markets seem to think that something will turn up. OK, ESTX50 was down 1.9% today, but it’s still above where it was six months ago.

The dollar was up, now within shouting distance of 110 (actually 109.8). One of the big up moves was for NOK, presumably because of the amount of gas that Norway exports.

Thoughts