Oil and gas prices reach new highs
As new sanctions have been imposed against Russia due to that country’s invasion of Ukraine, already elevated European energy prices have soared to new highs, with natural gas prices reaching all-time records.
During the coming six months or so, gas prices will be 11–12 times higher than they were in 2019, and electricity prices in Germany are roughly 10 times higher.
The price of Brent crude oil is around USD 126 per barrel. Fixed-price contracts, probable tax cuts and government subsidies might help to ease price increases at consumer level or at least delay their impact.
The United States
Last week’s US jobs report was positive
On Friday, March 4, the US labour market report for February was published. Unemployment fell to 3.8% while job creation substantially exceeded market expectations.
American inflation figures are due on March 10
On Thursday (tomorrow), US inflation figures for February will be released. We expect inflation to remain high since there are no indications of any incipient slowdown. It remains to be seen how this situation will affect the US Federal Reserve’s key interest rate decision next week, to be announced on March 16.
March 4 - Extra Market Update: Escalating war is causing market turbulence
In case you missed our Extra Market Update last Friday, you will find it here.
Our market view
We are replacing our customary market view text this week with the following two webcasts, both in English:
Market update in light of the Ukraine war, featuring investment strategist Johan Hagbarth and chief investment officer Fredrik Öberg (12 min)
Commodities update, with Johan Hagbarth and chief commodities market analyst Bjarne Schieldrop (13 min)