Last week, Russia went one step further in attacking the West economically and energetically. She turned off the gas tap with the Nord Stream pipe, as a result of which supplies to Germany were suspended. Such actions by Russia worsened considerably investor sentiment on Wall Street. This contributed to declines on the New York Stock Exchange on September 2. Finally, the S&P index, which gained 0.7% at the opening of the session, lost 1.07%. and ended the week at 3,924.26 points.
Oil price fluctuations in the NY Stock Exchange
There are no discounts at gas stations in Poland. However, oil on the New York fuel exchange in the first week of September 2022 was cheaper until the last day of the week – by a total of almost 11 percent. On September 2, it began to rise, which may be related to the fact that investors are preparing for the OPEC + meeting scheduled for September 5 on the supply policy of a group of oil suppliers.
As a result, at the end of the first week of September this year West Texas Intermediate oil barrel in October deliveries, it cost USD 88.34 on the NYMEX in New York, or 2 percent. more. However, for a barrel of Brent crude oil at the ICE in London for November deliveries, you had to pay USD 94.20 at the same time, up by 1.99%.
Natural gas sell-off in Europe
The positive news from the European raw materials market is that natural gas price decreasing. On Friday, September 2 in the Dutch TTF hub in the morning, prices in contracts with delivery for the month were lower by nearly 6.4 percent. It was necessary to pay EUR 227.5 for 1 MWh. On Thursday, September 1, about 250 euros were paid for 1 MWh. The price of gas dropped in contracts for November delivery. On Friday morning, less than EUR 234 was paid for 1 MWh, which is 6% less. compared to the price of Thursday.
Cheaper copper in London and NY
You can also talk about a discount in the context of commodity exchanges, especially in the case of copper prices. Prices on the metals exchange in London fell ahead of the release of US employment data for August. As a result, copper in 3-month deliveries to the LME was valued 0.5 percent lower. against USD 7,597.00 per ton. On Comex, it cost 0.31 percent. less – 3.3960 per pound of metal.
Forecasts of NBP interest rate increases
The level of the main interest rates of the National Bank of Poland prevailing in Poland is of great importance for the valuation of the zloty. In the draft of next year’s budget, the PiS government assumed that the central bank’s reference rate will increase to 7% in the second half of this year, and currently it is 6.5%, while from the fourth quarter of 2023 interest rate cuts are expected.
Bitcoin below 20,000 dollars
The most important cryptocurrency in the world, or Bitcoin, on Monday, August 28 this year, fell below its key level of $ 20,000. He set the direction to the south, i.e. drops for other cryptocurrencies. The reason for this is the statement of the chairman of the Federal Reserve, Jerome Powell, who suggested further increases in the main interest rates in the US. Bitcoin was valued at $ 19,882 for 1 BTC. During the week, this token decreased by 8 percent. Ethereumi.e. the second largest cryptocurrency in the world, lost almost 2% within 24 hours and was valued at $ 1,465.