Not everybody might be fully aware of the dramatic situation the European industry/consumers find themselves in and I want to highlight therefore three unconventional assets: Dutch natural gas, German electricity and carbon futures. (I love Trading View for their broad spectrum).
Natural gas is rising to unprecedented levels in Europa due to a whole bunch of domestic and geopolitical policy failures.
Despite the green image Europe relies heavily on fossil fuels for power generation and the record prices are feeding into electricity prices, which are up several hundred percent in Germany as well as all over Europe.
Another major factor are new regulations for the trade of carbon futures which took effect this year and are proving to be disastrous for the end consumer.
Should the supply issues not abate and energy prices remain high the supply lines could further collapse or fracture at unexpected points and Inflation will remain a major concern for the economy and markets.