Market Information Tuesday 16 August 2022

The ongoing drought in Europe has caused the price of gas for a megawatt-hour to rise past the EUR 215 price yesterday and seems to be continuing to rise. The price is even higher than the peak that took place in March after Russia’s invasion of Ukraine. The drought is causing, among other things, low water levels that make it impossible to supply the coal-fired power plants in Germany. In addition, the nuclear power plants in France have the problem that the warm water makes it difficult to cool their plants, so that they have to work at lower capacity.

Figures published by the National Association of Home Builders show that confidence among American home builders in the United States fell even further in August. This is because sales conditions are considered negative. The housing index in the United States reached its lowest point in more than 2 years in August.

The oil price for a barrel of WTI fell 3% on Monday to a price of USD 89.41. In addition to disappointing economic data from the United States and continued weak data from China, the expectation is that the Iranian nuclear deal is going to bring more oil to the market. As we move towards the end of the summer, the demand for oil will continue to increase and the pressure on the Iranian nuclear deal will increase further to meet demand.

The 6M Euribor increased with 1 basis point to 0.77% compared to previous business day. The 10Y Swap decreased with 9 basis points to 1.73% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.