European Natural Gas Prices Drop Sharply: Near 18% Loss in Four Days

A roughly 18% decline in European natural gas prices over four days signals strong downward momentum in the global gas market. NATGAS last closed at 2.94, and although the 24-hour change is slightly positive, this news could increase selling pressure in the short term. The RSI is at 52.7, in neutral territory, slightly below the MACD signal line and almost level with the SMA20; thus, technical indicators do not yet provide a clear direction. Therefore, while the news effect is downward, it should be noted that some of the current pricing may have already reflected the news. In the 1-3 day outlook, downside risk is more dominant, but the confidence level is moderate.

The sharp decline in European natural gas prices could support risk appetite by easing inflation pressure through energy costs. This may be perceived positively, particularly for energy-importing economies like Turkey, in terms of the foreign trade balance and inflation outlook. However, since the sustainability of the decline on the supply-demand front is uncertain, the market reaction may remain limited. Overall, it could create a mildly positive sentiment for global equity markets and risk assets.