U.S. jobless claims unexpectedly rise
After more than 4 consecutive weeks of declines, initial jobless claims in the United States unexpectedly rose on Thursday.
Figures from the Labor Department showed that applications for unemployment benefits rose to 373,000 for the week which ended July 3rd.
Today’s figures were well above expectations for 350,000 applications for last week, and up 2,000 from the previous report.
Despite Non-farm payrolls rising last Friday to 850,000, Job openings in the United States continue to remain historically high, as many businesses continue to struggle to find workers.
As of writing, both the Dow Jones and S&P 500 were trading lower.
DAX 30 falls as ECB updates inflation target
Germany’s and Europe’s main index the DAX 30 closed in the red in today’s trading session, as the ECB announced it will be adjusting its inflation goals.
The European Central Bank, which dictates monetary policy for the 19 member states, today confirmed that it will be targeting a 2% inflation rate in the medium term.
Speaking on Thursday, the bank’s President Christine Lagarde said that., “We believe the 2% target is clearer, simpler to communicate and a good balance“.
Lagarde went on to add that, “We know that 2% is not going to be constantly on target, there might be some moderate, temporary deviation in either direction of that 2%. And that is OK”.
She went on to dismiss that the change was made to be in line with the Federal Reserve’s own targets, however markets seemed to have waved off her reassurances.
The DAX closed 1.73% lower on Thursday.
Japan’s Nikkei 225 drops as Olympics ban spectators
It was confirmed earlier today that Olympic organizers have moved to ban spectators from attending this summer’s games in Tokyo.
The move came as the Japanese government announced a state of emergency, as COVID-19 cases have begun to rise in recent weeks.
Although international fans were already banned, it was expected that domestic spectators would be able to attend, as organizers looked to have venues filled up to 50% capacity.
However, with the state of emergency starting from Monday all the way through to August 22nd, domestic fans will also be unable to attend.
The move is a huge blow to both the economy and organizers and led to the Nikkei closing 0.88% lower.
Quote of the day – “There is a huge difference between a good trade and good trading.”– Steve Burns