On Tuesday, with weakening of European and American bond yields and good corporate financial reports, risk sentiment boosted, European and American stock markets rose, and Chinese stocks listed in the United States rebounded sharply.
. As the supply and demand balance swayed sharply, the international energy market experienced a huge shock. The prices of natural gas in Texas and some European natural gas fell to negative values.
Chinese stocks rebounded sharply, US dollar index plunged
US stock market closed sharply higher on Tuesday, S&P 500 index rebounded about 8% from its closing low on October 12.
US Treasury yields fell and better-than-expected financial reports helped the stock market rise, with the 10-year US Treasury yield falling to 4.087%, and the 2-year US Treasury yield falling to 4.473%. As of Tuesday morning, 71% of companies reported earnings per share exceeded analysts' expectations, FactSet data showed. Art Hogan, chief market strategist at
B. Riley Financial Inc., said: "We saw better-than-expected financial reports, and the US Treasury yields fell, which is good news for the stock market." As of the close of
, the Dow Jones Index rose 1.07% to 31,836.74 points; the S&P 500 rose 1.63% to 3,859.11 points; and the Nasdaq Index rose 2.25% to 1,199.12 points.
Large technology stocks all closed up, Apple rose 1.93%, Amazon rose 0.65%, Meta rose 6.01%, Google rose 1.91%, Microsoft rose 1.38%, and Netflix rose 3.03%.
Tesla rose more than 5%, leading US stock new energy vehicle sector to generally rise. Musk told many bond underwriting banks that they planned to complete the acquisition of Twitter on Friday. Twitter rose more than 2%, and the stock price once rose above $53.
chip stocks also rose. Philadelphia Semiconductor Index rose more than 2%, breaking through 2,400 points to its high since October 6. Intel rose nearly 1%, AMD rose nearly 5%, both hitting record highs in the past three weeks, and Nvidia rose more than 5% to a one-month high. But TSMC's U.S. stocks fell again.
Popular China outperformed the U.S. stock market throughout the day, Nasdaq Golden Dragon China Index (HXC) once rose 6% and finally closed up 4.55%. Among the four constituent stocks of Nasdaq 100, JD rose 3%, Pinduoduo rose nearly 7%, and NetEase and Baidu rose nearly 2%. Among other stocks, Alibaba stopped falling and turned to rising, Tencent ADR rose 0.6%, Bilibili rose 8%, NIO rose 12.49%, Xiaopeng Motors rose 10.89%, Ideal Auto rose 8.31%, and Faraday Future rose 25%. The
USD index plunged, with a deepest drop of 1.1%, losing 111 for the first time since October 6.
ECB hawkish rate hike on Thursday is imminent, the euro rose by more than 100 points against the US dollar, which is rising for the first time since October 5. The yen rose to 148 against the US dollar, which is still not far from a 32-year low.
The new British Prime Minister has significantly improved market sentiment. pound rose by about 2% against the US dollar or more than 220 points, and the daily high is close to the 1.15 mark to the highest since October 5th. The euro also fell by more than 1% against the pound. What happened to
?
Some natural gas prices in Europe once fell to negative value
It is worth noting that due to limited acceptance capacity in stocks, some areas of Europe have oversupply of liquefied natural gas , and spot natural gas prices once fell to negative value.
According to Wall Street News , on October 24 local time, the spot price of some natural gas in Europe fell to negative at one point, reaching -15.78 euros/megawatt-hour, the lowest price ever.
Affected by this, the main European TTF natural gas futures contract fell below the 100 euro/megawatt-hour mark on Monday to 96.5 euro/megawatt-hour, a day-time drop of 15%, hitting a 4-month low. The price of the main contract fell 70.8% from the peak of €346.5 per MWh set in August.
market analysis believes that the decline in spot prices of some European natural gas to negative is mainly related to the peak of local natural gas acceptance capacity.
After experiencing a large number of high-priced procurements, European natural gas inventory has approached the storage limit. According to data from the European Natural Gas Infrastructure Association (GIE), as of October 24, the overall natural gas storage rate of EU was 93.61%, and the largest economy in , the gas storage rate of Germany even rose to 97.5%.
Although the gas storage rate is approaching the limit, a large number of LNG tankers are still heading towards Europe. Media statistics show that Europe is expected to accept 82 LNG tankers this month, an increase of 19% from September. MarineTraffic tracking images show that there are currently about 60 LNG tankers in northwestern Europe, the Mediterranean and the Iberian Peninsula .
Congestion has formed outside the LNG port in Europe. In Spain, the largest LNG importer in the EU, about 35 LNG transporters are currently idle on the Spanish coast because they cannot handle the excess gas.
The warm winter in Europe this year has also worsened the current situation. Unless the cold wave comes, European governments will not start the use of LNG stocks on a large scale.
weather forecasting company Maxar Technologies Inc. predicts that temperatures in Paris, the French capital, will reach as high as 25 degrees Celsius (77 degrees Fahrenheit) on Thursday. The temperatures will also be much higher than usual in other major cities such as London to Frankfurt and Madrid . "Temperatures on the continent are generally higher than normal," said
Maxar in a daily report. "Giacomo Masato, chief analyst and senior meteorologist at Italian energy company Ilumia, expects that the current gas surplus will last until at least December, given that Europe is unlikely to experience a prolonged cold wave this year.
According to CCTV News, on October 25, local time, the meeting of energy ministers of EU member states was held in Luxembourg . After the meeting, EU member Simson, the EU's energy affairs committee, introduced that at this meeting, EU member states supported the joint procurement of natural gas, believing that this would give the EU a favorable position in the international natural gas market, with the total joint procurement volume reaching 13.5 billion cubic meters. The final plan will be decided by the meeting of the European Council next month.
The price of natural gas in Texas in the United States fell to negative
In addition to Europe, natural gas in Texas in the United States also fell to negative .
On Tuesday, October 25, natural gas prices in West Texas, USA fell below zero, the first time since 2020.
On Tuesday, the price of natural gas at the Waha hub in the Permian Basin in the United States fell to around minus $2 per million British thermal units. By comparison, the price was about $5 a week ago. The price drop to negative means that gas producers are actually spending money to ask people to take gas out of them.
Texas natural gas prices plummeted, caused by Kinder Morgan's Gulf Express and El Paso gas pipeline system maintenance. Insufficient pipeline capacity is actually a long-term problem that has plagued gas producers in the Permian Basin for many years. When gas pipe operators must perform maintenance or maintenance operations, local operators must also reduce production or suspend gas transmission. Campbell Faulkner, chief data analyst at OTC Global Holdings, said that gas pipeline restrictions in the Permian Basin have never been soothed, making the local area more susceptible to sudden oversupply and price shocks. Data compiled by Bloomberg shows that natural gas prices in the Waha area fell to negative octave in 2020, and there are more than 20 more times in 2019.
Since most of the natural gas extracted from the Permian Basin is a by-product of crude oil extraction, there are also climate effects. When the pipeline is too full to handle more gas, companies usually burn off excess gas so they don’t have to reduce or stop oil production. This practice, known as the burn, has increasingly aroused anger among environmental groups and scrutiny by regulators.
editing | He Xiaotao Dubo
proofreading | Liu Xiaoying
cover picture source: Photo Network-500558432
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