- European Power Prices Soar Higher.
- Rhine River Levels Remain a Concern.
- Chinese Economy Sounds Warning Around Growth Prospects.
DAX 40: Retreats as Chinese Economic Outlook Weighs on Sentiment
The DAX[1] retreated in European trade as a combination of technicals and a shift in global sentiment halted the index’s rally. Economic data released earlier Monday showed China’s economic growth rate unexpectedly slowing in July, prompting the country’s central bank to cut key lending rates in a surprise move. China's economy, the world’s second-largest, is struggling to shake off the June quarter's hit to growth from strict COVID restrictions. A slowing Chinese economy does not bode well in what could be seen as an ominous sign for global growth heading toward 2023.
European power prices meanwhile continued their march higher as natural gas[2] extended gains, deepening the energy crunch that’s threatening to plunge the region into a recession.Next-year electricity rates in Germany advanced as much as 3.2% to 475 euros ($485) a megawatt-hour on the European Energy Exchange AG with the price doubling in the past two months alone. The market is being driven by concerns over whether Europe’s tight gas supplies will be able to generate enough electricity this winter. European governments are looking at ways to ease and assist the public with soaring energy prices as there is no clear sign of when the rally could stop.
Understanding Inflation & its Global Impact[3]
In corporate news, Henkel (HNKG_p) stock rose 0.4% after the German consumer-goods company announced an increase in sales for the first half of the year but earnings fell, hurt by increasing raw-material and logistics prices.
With strong technical roadblocks just above the current price all eyes will be on the 14000 psychological level[4], which has a host
