Daily Brief - 20 June 2024

European stocks stumble despite US tech boom

Japan's exports grew at their fastest pace since late 2022, increasing by 13.5% in May due to a weaker yen, which boosted the value of shipments. This marks the sixth consecutive month of gains, driven largely by strong car and semiconductor manufacturing equipment exports. However, the weak yen also inflated import costs, leading to a trade deficit of ¥1.22 trillion. Exports to the US and China saw significant increases, while those to the EU fell. Concerns persist over cost-push inflation and its impact on private consumption and company profits.

Japan's exports surge thanks to weak Yen

Investment funds are betting heavily on a rise in European gas prices due to growing concerns over fuel supplies. The number of net long positions in Dutch gas futures has increased for the second week in a row, nearing the highest levels since January 2022. Europe's reliance on global supplies makes the market vulnerable to disruptions, with even minor outages in Norway causing price spikes. Additionally, competition with Asia for liquefied natural gas could affect inventory levels ahead of winter. Recent volatility in the market and geopolitical tensions have contributed to a 7% increase in gas prices this year.

Funds increase bets on rising European gas prices

Investment funds are betting heavily on a rise in European gas prices due to growing concerns over fuel supplies. The number of net long positions in Dutch gas futures has increased for the second week in a row, nearing the highest levels since January 2022. Europe's reliance on global supplies makes the market vulnerable to disruptions, with even minor outages in Norway causing price spikes. Additionally, competition with Asia for liquefied natural gas could affect inventory levels ahead of winter. Recent volatility in the market and geopolitical tensions have contributed to a 7% increase in gas prices this year.