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Gas prices soar 16pc as Russia keeps taps closed

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Good Morning. 

The combination of the UK’s supply-chain crisis and spiralling energy costs are expected to hit investor sentiment today. 

The FTSE 100 fell below the 7,000-mark on Friday and is set to open this morning around 53 points lower at 6,910 – its lowest level since July – as markets also brace for the Bank of England rate decision on Thursday. 

John Roe, head of multi-asset funds at Legal & General Investment Management, told Bloomberg there are a lot more risks facing the UK Gas and power prices are breaking records day after day, and money markets are pricing in rate hikes after inflation surged to the highest in more than nine years. 

5 things to start your day 

1) Mounting fears of a 1970s-style three-day week as Britain’s energy crunch deepens: Rocketing power prices and a gas storage crisis threaten the recovery and leave the UK at the mercy of Russia’s Vladimir Putin 

2) Government plans gas rescue package as a million families face energy bill price hike: Ministers held talks with energy suppliers amid fears smaller firms could collapse

3) Brussels mulls OneWeb stake to challenge Elon Musk’s Starlink: Potential investment would strengthen hand of British satellite broadband player in race to blanket Earth in internet signal

4) Roger Bootle: The Merkel era is over, but her economic legacy will linger on: The Chancellor’s fiscal conservatism has had a baleful effect on the German economy, but her successors cannot escape her shadow

5) Sterling under threat from stagflation bets: Currency markets are bracing for a choppy week as central banks make decisions on interest rates

What happened overnight 

Shares fell nearly 4pc in Hong Kong on Monday in holiday-thinned trading in Asia, with other big markets in Tokyo and Shanghai closed.

Other regional benchmarks also fell after Wall Street wrapped up last week with another decline.

Hong Kong property companies and banks lost ground on persisting concerns over the potential for ripple effects from the financial troubles of Chinese developer Evergrande.

The company was expected to miss interest payments, as ratings companies forecast it may default on its debt. Its shares fell 17pc Monday.

Henderson Land Development dropped 12pc and New World Development lost 11pc amid reports that China would tighten oversight over the property sector in Hong Kong.

The Hang Seng in Hong Kong dropped 3.9pc to 23,955.18 and Australia’s S&P/ASX 200 shed 2pc to 7,254.10. Markets were closed in mainland China, South Korea, Japan, Taiwan and Malaysia.

Coming up today

  • Corporate: Redde Northgate (Trading update)
  • Economics: Rightmove monthly house price index (UK)

Read More: Gas prices soar 16pc as Russia keeps taps closed

2021-09-20 12:49:55

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