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April-30, 2022, European market financial news and latest economical updates, by forex forum.
It was a bearish week for the European majors in the week ending April-29, 2022.
The CAC40 fell by 0.73%, with the EuroStoxx600 and the DAX seeing losses of 0.64% and 0.31%, respectively.
After a bearish start to the week, corporate earnings supported riskier assets in the week. The upside was modest, however, with market sentiment towards the global economy and Fed monetary policy weighing heavily on risk sentiment.
China’s pledge to support the economy also delivered the European majors with support.
While the weekly losses were modest, it was a bearish month, with the DAX sliding by 2.20% and the CAC and EuroStoxx600 falling by 1.90% and 1.20%, respectively.
On the inflation front, inflationary pressures ticked up further, though only moderately. According to prelim figures, the Eurozone’s annual rate of inflation picked up from 7.4% to 7.5%.
On the other hand, Gold was on a rollercoaster ride this month and ended lower, marking its first such decline in three months in April.
Price rose in the early half of the month but lost momentum close to $2,000/oz level and corrected sharply to near $1,870/oz level before moving back close to $19,00/oz level.
Gold has been directionless as support from geopolitical risks, inflation concerns and global growth worries is countered by Fed’s monetary tightening outlook which has pushed the US dollar and bond yields higher.
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Moreover, Europe 'asleep at the wheel' on Russian energy
The figures are striking. In 2021, 25% of the EU's oil imports and 39% of its natural gas imports came from Russia, according to the bloc's official statistics organization. The EU last year imported more than $100 billion worth of Russian energy.
The current high energy prices mean Russia is still bringing in serious money from its energy exports. The country has exported more than $66 billion of energy since it invaded Ukraine, with the bulk going to the EU.
The problem is particularly acute for Germany, Europe's biggest economy. One-third of Germany's crude oil imports and more than half of its natural gas imports came from Russia last year, according to Reuters.
The OPEC+ group of oil-producing countries is slowly increasing output, and both the US and the International Energy Agency have announced they'll release oil from strategic reserves. This should make more supply available in the coming months.
But shunning Russian oil comes with heavy costs. By looking elsewhere for energy, Europe would be increasing its competition for supplies with China, potentially heightening tensions with the world's second-most powerful economy.
Elsewhere, Russia's foreign ministry on Saturday said it expected commodity flows with China to grow and trade with Beijing to reach $200 billion by 2024, the Interfax news agency reported, as Moscow looks east in the face of growing western isolation.
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