Closing summary
European stock markets are pushing higher. The FTSE 100 index in London is just 5 points ahead now at 7,489, with just three stocks rising. Germany’s Dax is 1.4% ahead at 14,509 while France’s CAC has gained 1.3% to 6,637 and Italy’s FTSE MiB is 1% higher at 24,185. On Wall Street, shares have slipped, with the Dow Jones down 0.3%.
Russian stocks fell when the Moscow stock exchange resumed full trading of Russian stocks and bonds today, but in a shortened trading day. A ban on short selling, and on foreigners selling stocks and OFZ rouble bonds until 1 April, remain in place. The rouble-based Moex Russia index fell 2.15% while the dollar-denominated RTS index slipped 0.8%. The rouble strengthened to 92.51 against the dollar earlier, its highest level since 1 March.
Crude oil prices have fallen today as a two-stage lockdown in Shanghai sparked concerns about slower demand for oil. Brent crude, the global benchmark, has dropped nearly $10 to $111.27 a barrel, while US light crude has dropped to $104.84 a barrel.
European gas prices have risen, however, amid fresh concerns over supplies as Russia insists it wants to be paid for gas in roubles and the G-7 group of nations refuses to comply. The British gas price for day-ahead delivery rose 25p to 243.95p per therm while the Dutch next-day contract rose 1.5% to €102.50 per megawatt hour.
Britain’s economy is expected to suffer a growth slowdown amid the biggest single shock from energy prices since the 1970s, the governor of the Bank of England has warned. He also warned that huge swings in commodity prices mean resilience in financial markets can’t be taken for granted and the authorities are watching the situation very closely.
The chancellor, Rishi Sunak, is being grilled by MPs on the Treasury committee about the spring statement and the cost of living crisis right now. You can follow the latest here.
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Thank you for reading. We’ll be back tomorrow. Take care! – JK
Updated
BOE's Bailey: Britain to suffer biggest energy price shock since 70s
Britain’s economy is expected to suffer a growth slowdown amid the biggest single shock from energy prices since the 1970s, the governor of the Bank of England has warned.
Andrew Bailey said there were signs of slowing demand from consumers and businesses as they come under heavy pressure from the cost of living squeeze, with soaring prices for gas, electricity and other goods and services, reports our economics correspondent Richard Partington.
“The shock from energy prices this year will be larger than any single year in the 1970s,” he said at an event held by the Bruegel thinktank in Brussels on Monday. “The caveat is that the 1970s had a succession of years and we very much hope that would not be the case now. But as a single year, this is a very, very big shock.”
