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U.S. Indices Lower, as Recession Fears Outweigh Declining Jobless Claims
Despite data revealing that unemployment claims had declined more than expected, US equities were trading lower on Thursday.
Figures from the Labor Department showed that claims had fallen to 193,000 last week, more than the 215,000 markets had expected.
Today’s number is down from 209,000 in the previous week, which is a positive sign for the U.S. economy.
In addition to this, GDP data today also showed that production in 2021 rose by 5.9%, which is more than the 5.7% initially stated.
As of this writing, the S&P 500 is down 2.45%.
German Inflation Reaches 25-Year High
Germany’s DAX 30 was also lower in today’s session, as the country’s inflation rate hit a 25-year high.
Consumer prices in Europe’s largest economy rose to an annualised rate of 10.9% last month.
This is the highest reading for German CPI since 1996, and was mostly due to the rising costs of energies.
Overall, energy prices were 43.9% higher compared with the same period last year.
The DAX 30 closed 1.71% lower as a result.
WTI Higher, as OPEC+ Consider Cutting Output
Crude oil prices were up for a third consecutive session on Thursday, as it was reported that OPEC+ were considering cutting output.
Reports say that Russia, which is also a part of the OPEC cartel, could suggest cutting output by 1 million barrels per day (bpd).
The next meeting will take place on October 5, and as of writing, it seems likely that a cut could take place.
Many people believe that the move to lower supply comes as WTI fell to a nine-month low earlier in the week.
WTI crude hit a peak of $82.94 in today’s session.
"The main purpose of the stock market is to make fools of as many men as possible."
-Bernard Baruch.
