TERMIN LIVE MARKETS PRIOR to a great electric car: a "perfect storm" for the utilities

TERMIN  LIVE MARKETS PRIOR to a great electric car: a "perfect storm" for the utilities ...

Dec 22 - Welcome to the home for real-time coverage of markets brought by Reuters reporters. Share your thoughts with us at the weekend!


The high demand of electricity in the winter months, and the record-breaking slug during the challenging winter months could lead to another crisis for the economies of Europe, but for the utility space it is, it isn't good news.

Barclays sees a "very favorable" investor case and expects that power prices may move even higher.

"European generation is facing an extreme wind, but we think higher prices reflects lack of consensus yield for utilities. One of the key arguments in our recent report is that the Bloomberg consensus still does not reflect the power price rally," said the UK bank.

While the gravity of the problems driving power prices to a higher point, we think the scale of the likely EPS impact should drive more investment's positivity, particularly for European utilities that should benefit from high absolute power prices but have so far been left behind," adds the add.

They mentioned Enel, EDF, Engie and RWE as possible benefiaries.

(Danilo Masoni)

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The global market index suffered from a mixed reaction to the meeting, with the STOXX 600 regional benchmark struggling to find a clear way to trade just above parity in early deals.

The rise in tech stocks partly offset the demand for commodities and travel stocks. This pushed the pan-European benchmark index to keep float.

A single-stock currency, Delivery Hero rose 5% after a German food delivery group said it would scale down its foodpanda operations in Germany and sell the subsidiary's Japanese unit.

Here's your opening picture.

(Danilo Masoni).

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Though politicians don't worry about Omicron and more countries mull extended social distancing measures, stock markets remain strong. The Wall Street gains have not been led by usual lockdown beneficiaries in tech, despite shares such as Carnival and Expedia.

We seem headed for a slower session. Europe shares also rose after a robust Asian session and US futures pointing south.

As far as the Omicron impact might be, markets already are enquiring upon treatments such as the Pfizer and Moderna pills to allow patients to get treated at home. Another explanation, considering that the UK's promise of an aid to the hospitality industry, is the expectation that not only central banks, but governments will also be backstopping economies.

In Britain, stakes are particularly high. Data show that a third quarter GDP - primarily pre-Omicron - grew slower than expected in an annual survey. The economy remains much more small than pre-pandemic indices, so the Q3 investment dropped 2,5 % compared to a year ago.

And still, bulls are used by money and there's more to come.

That's reflected in the record a year-old $1.75 trillion that was stolen by US banks on Tuesday night at the overnight repo facility of the Fed's overnight bank, demonstrating the surplus reserves glut that had seen the drop of two o'clock since October.

Continuing to note, demand for overnight reverse repo sounded 1,6 trillion dollars a week ago and was subsisting $1 trillion in August.

Nonetheless, the process continues in emerging markets.

The Turkish lira is 30% above record lows following a promise to compensation deposit holders against currency losses. But the move is on the point of success for next months. A 12% lira depreciation compared to the lira interest rate can boost the budget deficit by around 1% of the state's GDP over six months.

Later in the day, the Czech National Bank will up the rate to 75 basis points, after October's massive 125 bps move.

Key developments that will require more direction to the market on Wednesday:

-The central bank holds rates in Thailand.

The Czech National Bank holds a monetary policy meeting.

-U.S. Final GDP Q3: Corporate profit/consumer confidence/existing home sales.

(Sujata Rao)



European shares will continue yesterday's recovery, as investors look beyond possible short-term damage to the highly infectious Omicron virus variant, making the economy confidence confident.

The stock price futures of the region are up 0.2-3.5%, adding to the gains in the previous session that saw the commodity shit and travel stocks help the STOXX score its best day in two weeks.

The volume has however started to fade before the Christmas holiday. It could be more erratic as trading moves progress.

Over the Pacific Ocean, stocks are growing slightly in Asia and the risk appetite is growing heading to year-end. And the U.S. index is easing slightly after strong closing.

Credit Suisse downgraded these week equities to neutral, inciting the high risk of low yields as well as the possible risk for a tighter monetary policy. However, it said that stocks can have value over the 6-month period.

(Donald Masoni)


Our standards: The U.S.

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