U.S. jobless claims fall, however, so do stocks
Today it was reported that the number of Americans filing for state unemployment benefits fell by 33,000 from the previous week.
Initial jobless claims came in at 860,000 for the week which ended September 12th vs expected of 850,000. The weekly report, which is released by the Labour Department also showed that close to 30 million people were on unemployment benefits at the end of August.
Although claims have declined, they remain high and above pre-pandemic levels. Stocks fell on the news, with the Dow Jones down 0.08%, S&P 500 lost 0.54%, and NASDAQ slipped by 1%.
Bank of England Keep interest rates unchanged
Continuing from yesterday’s Fed announcement, the Bank of England today also opted to keep interest rates unchanged.
The news came as all members of the Bank’s Monetary Policy Committee (MPC) opted to keep rates at 0.1%, after lowering rates twice from 0.75% in response to the pandemic. In addition to rates, the BOE will continue to maintain its asset purchasing programme at £745 billion.
GBPUSD continued to consolidate at support of 1.2866 and resistance of 1.3009 since falling into this zone around 7th September. The FTSE 100 fell to a 4-day low of 5,991.
OPEC+ to consider further action if markets worsen
Oil prices rose on Thursday on the news that OPEC and its allies which include Russia could meet in October should the situation within energy markets worsen.
Whilst speaking at a closed-door meeting of OPEC, it was reported that Saudi Energy Minister Prince Abdulaziz bin Salman stated that the cartel could hold an, “extraordinary meeting in October if oil markets weaken further”.
On the back of the news oil prices extended this week’s gains and now trade above $41 per barrel, after starting the week at $36.
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Senior Market Analyst