A world of expensive food and energy resources

Financial markets are trying to evaluate the new reality in which the world is right now and where it may be heading in the near future. The specter of a reality with more difficult access to food, expensive raw materials, restrictions on many products and massive inflation is looming. The main focus of attention seems to be the commodity market, in all its forms: from crude oil, through precious and industrial metals, to grains.

Raw materials and agricultural produce included in the price

Everywhere you look, there is a huge boom. Petroleum went up to $ 130 a barrel this morning and to the highest level since 2008 Gold rose to nearly $ 2000 an ounce, that is, to the highest level since August 2020. At one point, silver cost the most today since July 2021. Natural gas in the US is also more expensive, exceeding the level of USD 5.

Only from the beginning of the year, crude oil valued in USD seems to increase by 67%, while wheat seems to be even more expensive, gaining almost 1% from January 68. The world may be heading towards stagflation with difficult access to food due to the fact that Russia and Ukraine was responsible for 30 percent. wheat exports in the world.

Bad time for exchanges

With the huge increase in the risk of stagflation or even a recession, should there be interruptions in energy supply due to the difficulty of obtaining energy resources (coal or gas), stock indices may fall more and more.

Already, stock exchanges seem to be under a lot of pressure. Only today in the morning German DAX seems to decline by about 3%, to the area of ​​12700 points. US index futures are also down the line, falling by 1%. in the case of the DJIA up to 1,75 percent. for the Nasdaq 100.

Franc more expensive than Euro

In the currency market EUR / USD exchange rate fell below 1,09, the Swiss franc seems more expensive than the euro, as the parity level of 1,00 was exceeded, and the zloty was breaking records of weakness. The euro was due for over PLN 4,94 this morning.