After making a strong recovery from the pandemic, Europe’s luxury goods industry must now contend with the challenges brought by much higher than anticipated inflation, particularly around energy prices.
Nitesh Shah, head of commodities & macroeconomic research, Europe in WisdomTree, analyzes the outlook for the commodity sector, where recession may be a red herring for a market fuelled by a supercycle.
The rise in political risk has potentially divided the global trade interests and resource nationalism
has become a focus of all governments and trading blocs.
In our view, the widespread adoption of energy storage systems is essential for renewable energy to comprise high shares of the global power system.
Fidelity International’s Chart Room shares their own current estimates of how high consumer energy bills in the largest European economies could climb over the next two years in the absence of government intervention.
If tensions on gas markets remain higher for longer, a more severe gas market shock in which prices doubled from Q2 2022 levels (as modelled by IW Köln) would result in a deeper recession than in our baseline scenario.