Markets steady but unease remains
We’re seeing a little bit of positivity back in the markets on Wednesday but there’s still plenty of underlying unease amid a mixed bag of earnings and rising uncertainty.
Earnings season will continue to be a core focus for investors, despite the wide array of other factors that have been dominating market sentiment for months. It has gone quite well so far but it’s clear that there are some big challenges ahead which explain why we’re not seeing the lift we may otherwise see.
And when Russia is cutting off gas supplies to Poland and Bulgaria in response to their refusal to pay in roubles, following Putin’s decision to change the terms of payment, you can understand why. This may be a warning sign to others in the hope that they don’t follow suit but if they do, the standoff could play havoc with energy prices.
It will also continue to be a headwind for European stock markets as a result of the bloc’s heavy reliance on Russian gas. The weaponisation of gas was long seen as an unlikely last resort but now the Kremlin has got the ball rolling, the risk has become significantly greater which could pose a massive economic threat to the EU.
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