Nat Gas Surge Shakes Markets

Date: January 28, 2026

Nat Gas Surge Shakes Markets

Summary

Market Snapshot

Prior Close
Asset Level Days Change
S&P 500 6,950.23 +0.50%
FTSE 100 10,207.80 +0.58%
UK Natural Gas 6.80 +28.91%
2 Year Gilt 3.75 +1 bps
10 Year Gilt 4.53 +3 bps
GBP/USD 1.381 -0.20%
GBP/EUR 1.15 +0.05%
GBP/JPY 210.82 -0.01%
Brent Oil 65.59 -0.44%
Gold ($) 5,079.70 +2.08%
Bitcoin ($) 89,072.49 -0.05%

Prior Economic Events

Data Prior Cons Actual
No events available

Upcoming Economic Events

Data Prior Cons Time
No events available

Yesterday's Recap

No major UK economic data releases or BoE speeches yesterday, leaving markets to digest global influences. FTSE 100 edged up 0.58% to 10,207.80, reflecting modest gains in energy and mining sectors amid stable equities. Gilt yields ticked higher, with 2-year rising 1bps to 3.75% and 10-year up 3bps to 4.53%, as investors priced in potential rate policy shifts. Sterling was largely flat, with GBP/USD down 0.20% to 1.381 and GBP/EUR up 0.05% to 1.15, amid dollar volatility. Brent oil slipped 0.44% to $65.59, while gold rose 2.08% to $5,079.70 driven by US tariff threats boosting safe-haven flows. Natural gas surged an extreme 28.91% to 6.80, an unusually large move exceeding normal volatility due to severe winter storms disrupting supply and escalating Middle East tensions.

The Day Ahead

No major UK economic data releases scheduled today, with focus shifting to global events like the US Fed policy meeting. Investors will monitor for any UK BoE communications on rate outlook amid ongoing inflation assessments. Market attention centers on US Fed Chair Powell's remarks, which could influence sterling and gilt yields through spillover effects.

Other Economic Notes

UK housing markets remain resilient despite broader energy cost pressures from natural gas spikes. Brexit-related trade dynamics persist, with potential impacts from evolving EU-India agreements. (cont...)

Other Economic Notes (continued)

Inflation trends show moderation, supporting BoE's cautious easing path.

Global Macro News

India's economy surged 8% in H1 2026, defying global trade volatility, with exports up 20% in November amid structural reforms like GST tweaks and labor code implementations. The EU-India free trade deal, covering 99.5% of goods, boosts services and skilled mobility but faces US tariff threats, potentially disrupting global supply chains. AI disruptions loom large, with analysts warning of job market shifts and economic uncertainty from rapid adoption, as investments hit $500B in 2026. China's AI dominance threatens US hegemony, prompting policy responses that could affect UK tech investments and export demand.

BoE Watch

In the easing cycle, recent market volatility from natural gas and gold supports faster cuts to mitigate energy-driven inflation risks. MPC remains data-dependent, with dovish tilt favoring more reductions if UK services growth slows. Markets price 3 cuts by year-end, down from prior expectations, as global tensions reinforce caution. Governor Bailey may highlight trade deal impacts on UK inflation in upcoming remarks.


Source: https://robomacro.com/Research_Notes/US_Macro_Daily_20260128.html