Dow Jones lower, Jobless claims unexpectedly rise
The Dow Jones was trading lower on Thursday as data released showed that initial jobless claims in the U.S. had unexpectedly risen.
After coming in below 400,000 for the last 2-months, weekly jobless claims climbed to 419,000 for the week that ended July 17th.
This was well above the 350,000 markets had expected, and a sharp rise from the previous report which came in at 368,000.
Despite a record number of unfilled job openings, the U.S. labour market had been picking up in recent weeks, with NFP figures climbing by as much as 850,000 last month.
The rise in claims comes as the Delta Variant of COVID-19 continues to spread across the nation.
ECB keep rates unchanged
The European Central Bank today opted to keep interest rates unchanged, whilst remaining committed to maintaining its inflation rate target.
ECB’s governing council decided to focus on reaching the 2% inflation target in the medium term, before looking at readjusting its monetary policy stance.
Regarding this decision, ECB President Christine Lagarde stated that, “We did so to underline our commitment to maintain a persistently accommodative monetary policy stance to meet our inflation target“.
It was also revealed that the bank will continue purchasing €1.85 trillion worth of bonds until March 2022 as part of its Pandemic Emergency Purchase Program.
Germany’s DAX 30 climbed higher on the news, whilst EURUSD fell to an intraday low of 1.1757.
Shares in Chinese ride hailing app Didi, were down in today’s trading session, as it was reported that the company could be set to receive a hefty fine.
The company which is currently under investigation by Chinese authorities for posing cybersecurity risks, has seen its stock plummet since filing its IPO.
It is now expected that Didi could face a fine which is bigger than the record $2.8 billion paid by Alibaba earlier this year.
As of writing, shares in $DIDI were down around 9%, and traded 25% lower at $10.50 a share after debuting at $14 a share.
Many hope that if allowed to continue operating beyond the fines, shares in the company could rebound.
Quote of the day – “Letting losses run is the most serious mistake made by most investors.” – William O’Neil– William O’Neil