GER30 Upbeat, As Germany Freezes Nord Stream 2
Nord Stream 2
This gas pipeline, has been designed to transport gas from Russia to Germany and Europe, across the Baltic Sea. The total capacity of two strings of Nord Stream 2 is 55 billion cubic meters of gas per year. The aggregated design capacity of Nord Stream and Nord Stream 2 is therefore 110 billion cubic meters of gas per year. [1]
Germany and Europe are dependent on Russian gas, but German Chancellor Olaf Scholz halted Nord Stream 2 yesterday, noting that "This sounds technical, but it is a necessary administrative step to make sure that the pipeline cannot be certified at this point." [2]
This move came in light of Russia's recognition of two separatist regions in Eastern Ukraine earlier in the week, which Western countries condemned and led them to announce sanctions against Russia.
Sentiment is upbeat since yesterday, as the first tranche of western sanctions was probably underwhelming, while markets seem to think at this point in time that Putin will not move into the rest of Ukraine. Ukrainian President Zelensky expressed on Tuesday, his belief that a broad escalation on the part of Russia will not happen. [3]
Tensions are high and US President Biden said yesterday that this is the "beginning of a Russian invasion of Ukraine" , while US Secretary of State Blinken, called off Thursday's meeting with his Russian counterpart [5].
GER30 – H4
The German index extends the rebound from yesterday's 2022 lows (14,300) and eyes 15,000, but we are cautious about its ability to surpass the 15,350-15,400 area, above which downwards pressure would pause.
Despite its two-day advance, GER30 had plunged at the start of the week and it remains vulnerable to 14,300, although fresh risk-off wave will be required for a larger drop that would threaten 13,848.
Caution is needed, as markets monitor news around Ukraine, while Eurozone final January CPI is due shortly (10:00 GMT).
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
References
| Retrieved 23 Feb 2022 https://www.gazprom.com/projects/nord-stream2/ | |
| Retrieved 23 Feb 2022 https://www.deutschland.de/en/news/scholz-halts-nord-stream-2 | |
| Retrieved 23 Feb 2022 https://www.president.gov.ua/en/news/ukrayina-rozglyane-pitannya-rozrivu-diplomatichnih-vidnosin-73057 | |
| Retrieved 16 May 2026 https://twitter.com/StateDept/status/1496341547494920199 |
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