# Marketmind: Moment in the sun
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-09-01
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: European and Global Markets Look Ahead: Energy Prices Drop
Meta Description: Explore the latest market trends including the collapse of energy prices, economic indicators, and escalating geopolitical tensions in this comprehensive
URL: https://financedigest.com/marketmind-moment-in-the-sunhtml

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A look at the day ahead in European and global markets from Tom Westbrook

Summer may be finished, but the hot sun is helping energy prices off eye-watering highs. Benchmark German year-ahead power prices have collapsed 35% this week, helped by solar supply and ebbing gas costs.

As [Rabobank’s Michael Every](https://www.financedigest.com/rabobank-to-monitor-the-real-time-experience-of-every-customer-and-user-for-all-services.html "Rabobank to monitor the real-time experience of every customer and user for all services") put it, that brings us from “‘nobody can pay’ to ‘very few can afford to pay’ territory.

What a relief! As anyone schlepping back to the desk this week has found, in addition to airport chaos, markets are down, [euro zone inflation is at record highs and energy costs have British pubs in an existential crisis](https://www.financedigest.com/europes-spend-on-energy-crisis-nears-800-billion-euros.html "Europe’s spend on energy crisis nears 800 billion euros").

Another [month of contractionary PMIs](https://www.financedigest.com/uk-factories-suffer-worst-month-since-may-2020-as-economy-stumbles-pmi.html "UK factories suffer worst month since May 2020 as economy stumbles – PMI") loom today, and the latest out of Asia has not been great. China’s [factory activity fell for the first time in three months and there were weak](https://www.financedigest.com/japans-factory-output-posts-biggest-fall-in-8-months-on-weak-autos-chips-sectors.html "Japan’s factory output posts biggest fall in 8 months on weak autos, chips sectors") readings in Japan, South Korea and Taiwan.

The [yen hit](https://www.financedigest.com/asia-shares-weigh-china-risks-yen-hits-6-month-high.html "Asia shares weigh China risks, yen hits 6-month high") a 24-year low. Asia’s [stock markets](https://www.financedigest.com/stocks-markets-mixed-as-wall-street-deciphers-diverging-signals.html "Stocks, markets mixed as Wall Street deciphers diverging signals") <.MIWD00000PUS> fell for a fifth straight session and U.S. and [Europe futures](https://www.financedigest.com/markets-mixed-as-tech-boosts-us-stock-futures-europe-dips.html "Markets mixed as tech boosts US stock futures, Europe dips") are firmly in the red. \[MKTS/GLOB\]

The chill over geopolitics, meanwhile, is [deepening as winter](https://www.financedigest.com/euro-zone-downturn-deepened-in-oct-winter-recession-likely-pmi.html "Euro zone downturn deepened in Oct, winter recession likely -PMI") approaches. Russia may or may not resume sending gas down the [Nord Stream](https://www.financedigest.com/denmark-invites-nord-stream-operator-to-help-salvage-unidentified-object.html "Denmark invites Nord Stream operator to help salvage unidentified object") pipe on Saturday. The U.S. has told [Nvidia to stop exporting certain chips](https://www.financedigest.com/nvidia-shows-new-research-on-using-ai-to-improve-chip-designs.html "Nvidia shows new research on using AI to improve chip designs") to China.

The U.N. human rights chief has said detention of Uyghurs in Xinjiang may constitute crimes against humanity, drawing a vigorous denial from Beijing.

Springtime seems a long way away.

![](https://www.globalbankingandfinance.com/wp-content/uploads/2022/09/096.jpg)

Graphic: Historical [power production totals for Europe](https://www.financedigest.com/edf-edison-ansaldo-team-up-to-develop-nuclear-power-in-europe.html "EDF, Edison, Ansaldo team up to develop nuclear power in Europe") and EU-27 – https://fingfx.thomsonreuters.com/gfx/mkt/myvmnedqkpr/pie%20charts%20of%20total%20production.png

[Key developments that could influence markets](https://www.financedigest.com/automotive-actuator-market-key-manufacturers-development-trends-and-competitive-analysis-2028.html "Automotive Actuator Market Key Manufacturers, Development Trends and Competitive Analysis 2028") on Thursday:

Economics: [European manufacturing](https://www.financedigest.com/holcim-to-acquire-european-roofs-manufacturer-fdt-flachdach-technologie.html "Holcim to acquire European roofs manufacturer FDT Flachdach Technologie") PMI and unemployment. U.S. ISM survey

Speakers: ECB’s Mario Centeno, Atlanta Fed President Raphael Bostic

(Reporting by Tom Westbrook; Editing by Ana Nicolaci da Costa)


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