Major European indices end the day mostly higher (sans UK FTSE100), but lower for the week

The major European indices are ending the day with modest gains/changes. The exception is the UK FTSE 100 which fell -0.41% the day. However for the week, all the indices are down sharply.

The final numbers for the day are showing:

  • German DAX, +87.77 points or 0.67% at 13126.27
  • France’s CAC, -3.59 points or -0.06% at 582.66
  • UK’s FTSE 100 -28.73 points or -0.41% at 7016.26
  • Spain’s Ibex +67.8 points or 0.84% at 8145.91
  • Italy’s FTSE MIB up 0.43%

For the trading week:

  • German DAX, -4.7%
  • France’s CAC -4.8%
  • UK’s FTSE 100 -4.0%
  • Spain’s Ibex -3.0%
  • Italy’s FTSE MIB -3.2%

Looking at the German DAX, the price gap lower on Monday (last Friday the price closed at 13761.84), bottomed on Thursday at 13007.91, before modestly rising today. The move up from the June 6 high at 14709.382 the low reached yesterday took the price down -11.57% in a trading days.

German DAX
German DAX falls 11.57% over the last 9 days

Looking at other indices recent moves to the downside:

  • France’s CAC fell -10.96% from its June 6 high to the low today
  • UK FTSE 100 fell -8.48% from its June 6 high to the low today
  • Spain’s Ibex has moved down -10.75% from its May 30 high to the low today
  • Italy’s FTSE MIB has fallen -12.96% from its May 30 high to its Wednesday low this week

In comparison to the recent moves lower in the US stock indices:

  • NASDAQ index down -14.24% from its June 2 high
  • S&P index moved down -12.93% from its June 2 high
  • Dow Jones fell -10.81% from its June 2 high.

Federal Reserve Chair Powell is speaking Friday 17 June 2022

Coming on Friday at 8:45am NY time.

  • Fed Chair Powell gives welcome remarks before the Inaugural Conference on the International Roles of the US Dollar, in Washington

‘Welcoming remarks’ does not sound like it’ll be a forum for discussion of his views on the economy and/or monetary policy. I guess we won’t know for sure until he’s finished. A heads up for potential headlines.

As an early heads up, Powell will be delivering remarks to the US Congress next Wednesday:

  • semi-annual testimony on monetary policy before the US Senate Banking Committee
Powell QA May 4 2022

BOJ monetary policy is expected to remain on hold – decision today

There is no firmly scheduled time for the BOj statement. It is reasonable to expect it in the 0230 to 0330 GMT time slot.


traders are on edge awaiting similar from the Bank of Japan. The SNB is an example of NEVER ruling anything out in markets (and watch out for overconfidence in making predictions). Having said that I’d be urging you not to hold your breath waiting for a 50bp rate hike from the Bank of Japan.

All of the above I have posted earlier. Adding in a couple of snippets now:


  • The Bank of Japan June meeting is expected to come and go with no change to short or long-term rate targets but dislocation in JGB markets, ramped-up efforts to defend the yield curve target and increasing commentary on the weaker yen make it a more interesting meeting than usual.
  • The BoJ is facing a weaker yen and headline inflation above its 2% target for the first time in 7 years, but the rise is driven by fuel and food, and policymakers have signalled they are waiting for wage gains sufficient to sustain at target inflation.

Société Générale

  • We expect the BoJ to maintain its main monetary policy.
  • Going forward, our main scenario is for the USD/JPY rate to stop exceeding 130 yen and for the core CPI to continue to be greater than 2.5% YoY. Therefore, we expect the BoJ to maintain its current policies – at least under Governor Kuroda.
Kuroda surprise meme

Italian PM Draghi said ECB rate rises will be more gradual than from the FOMC

Italian Prime Minister Mario Draghi is a former ECB president, the immediate predecssor to current Presdient Lagarde.

Draghi was speaking on a visit to Kyiv on Thursday.

  • the US has full employment, & US inflation excluding energy and raw material prices is much higher than in the euro zone
  • For this reason, while interest hikes are “inevitable” in Eurozone “the pace of adjustment is bound to be more gradual”

Posting this as a catch-up ICYMI. Speaking of cath-up … c’mon ECB!

ECB interest rates unchanged since 2019

Russia gas flows weapon in war on Europe: Germany will run out of gas in winter by January

Earlier LNG news on the fire (which will see only a ‘partial’ restart in 90 days and full operations won’t resume until ‘late 2022’) at a Texas facility:

This now via the Wall Street Journal (gated) on Russia using LNG as a weapon agaisnt Europe. In summary:

  • Moscow’s move to slash natural-gas exports to Europe has pitched the continent’s energy crisis into a dangerous new phase
  • Russia’s state-owned gas giant Gazprom PJSC throttled deliveries via the Nord Stream pipeline to Germany this week, blaming missing turbine parts that were stuck in Canada due to sanctions.
  • European officials and analysts dismissed the explanation. They said Moscow was weaponizing gas against European Union members that have imposed sanctions on the Russian economy and supplied weapons to Ukraine.

Check out that link to the Journal for more if you can access it.

Gas update (hourly candles):

gas chart 17 June 2022
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