European Markets Erase Morning Losses, Natural Gas at 3-month Low

Bridgette Randall
10 Oct, 2022
Frankfurt

European markets lacked direction in early trading and turned weaker after the indexes in New York opened lower. 

Market indexes closed down ahead of the start of the earnings season and investors also awaited the U.S. consumer price inflation data this week. 

The DAX index inched up 0.3% to 12,311.18, the CAC-40 index fell 0.1% to 5,860.04 and the FTSE 100 index fell 0.3% to 6,969.27. 

The euro declined 0.4% to 96.98 U.S. cents and the British pound eased 0.43% to $1.104. 

Brent crude oil edged down 2.3% to $95.59 a barrel and TTF natural gas dropped to a 3-month low of 154.12 euros a megawatt hour. 

 

Euro Zone Confidence Index Drops to 2020 Low 

The euro zone confidence index declined in September on the rising worries of inflation and growing uncertainties linked to the Russia-Ukraine war. 

The Sentix investor sentiment declined to -38.3 in October from -31.8 in September, the behavior research institute Sentix reported Monday.  

The index was at the lowest level since May 2020 and the current situation index dropped sharply to -35.5 from -26.5 in September.    

 

Swiss Jobless Rate Stable 

The Swiss franc held at 99.98 U.S. cents and the Canadian dollar inched up 0.1% to $1.373.  

The jobless rate declined marginally in September, according to the latest data released by the State Secretariat for the Economic Affairs.

The unadjusted Swiss unemployment rate fell to 1.9% in September from 2.0% in August and dropped from 2.6% a year ago.  

The seasonally adjusted jobless rate was unchanged at 2.1% in September from the previous month. 

 

Asian Markets Down on Rate Path Worries 

Benchmark indexes in Asia closed down on the worries that the higher rates will fuel further rise in the U.S. dollar and stoke worldwide inflation. 

The Nikkei 225 index declined 0.7% to 27,116.11, the Hang Seng Index plunged 2.9% to 17,216.66 and the the Sensex index decreased 0.3% to 57,991.11. 

The Indian rupee edged down to a new record low of 82.31 and the Japanese yen to a new 24-year low of 145.75. 

Then Korean won and Australian dollar also declined as the U.S. dollar continued its rise against major worldwide currencies. 

South Korea's current account turned to a deficit of $3.05 billion in August from the downwardly revised $0.79 billion, the Bank of Korea said Monday. 

The goods account turned to a deficit of $4.45 billion from $6.03 billion a year ago.