European Markets Erase Previous Day Gains, Wild Swings In Natural Gas Trading

Bridgette Randall
28 Dec, 2022
Frankfurt

European markets fell on lingering recession and rising rate worries but commodities dominated index in the UK closed higher. 

Continental markets erased gains of the previous session after optimism about China reopening subsided and authorities said they will no longer publish infection data. 

The lack of infection data makes it harder to detect the virus spread i n the second largest economy and how long it will take before social mobility and economic activities resume to pre-pandemic pace. 

The FTSE index closed higher after a long holiday and adjusted to the advance in copper, coal and iron ore and crude oil prices during the previous sessions in the U.S. and Europe. 

 

Market Indexes In Review 

European markets closed down and the UK index reflected higher commodities prices in the previous session on the continent. 

Tech stocks edged lower after bond yields rose and energy stocks closed down in Paris and Frankfurt after crude oil prices eased and natural gas prices dropped to the low last seen on January 21. 

The DAX index fell 0.5% to 13,925.60, the CAC-40 index declined 0.6% to 6,510.49 and the FTSE 100 index added 1.9% to 7,497.19. 

 

Bond Yields at 10-year Highs 

German bond yields rose to 10-year highs on the worries that the resumption in activities in China will add fuel to rising inflation after commodities prices rebounded. 

The yield on 10-year German Bunds inched up to 2.50%, French bonds rose to 3.04%, UK gilts edged higher to 3.65% and Italian bonds increased to 4.63%.  

 

Energy Prices Drop On Falling Demand

Crude oil fell after rising in the previous session and natural gas prices dropped to the low last seen in January amid elevated storage and milder weather forecast for the next two weeks. 

Natural gas prices swung in a wide range and TTF Futures dropped to as low as