Risk-off Sentiment Stays on Monday

According to the latest news, executives at Credit Suisse spent the weekend assuring investors of the company’s financial stability, according to a Sunday Financial Times story. This came after the bank’s credit default swaps, which provide insurance against corporate default, dramatically increased on Friday and reached their highest level in at least 10 years.

EU energy crisis worsens

In what looks to be the most recent round of the dispute between Moscow and western Europe over the delivery of natural gas since Russia’s invasion of Ukraine in February, the Russian energy giant Gazprom froze its gas deliveries to Italy over the weekend.

The Italian oil and gas giant Eni stated that it anticipated the suspension of gas flows to last until Monday. At the same time, Gazprom claimed that it did not get the license for the pipeline flows via Austria.

Later on in the day, the ISM September Manufacturing PMI will be featured on the US economic agenda. In the afternoon, a number of FOMC policymakers, notably Kansas City Fed President Esther George and New York Fed President John Williams, will give presentations.

Oil stays volatile

In other news, on Wednesday, the Organization of the Petroleum Exporting Countries and Allies, often known as OPEC+, is scheduled to meet. According to Reuters, the members may decide to reduce their daily output by more than one million barrels.

If accepted, this would be the biggest drop since the epidemic and would come after the 100,000 barrels per day reduction last month. As a result, the WTI oil jumped nearly 5% today, soaring above 83 USD.