U.S. jobless claims fall as labor market remains strong
The number of Americans filing for unemployment benefits unexpectedly fell last week, pointing to sustained labor market strength even as the pace of job growth is slowing.
Initial claims for state unemployment benefits decreased 4,000 to a seasonally adjusted 259,000 for the week ended Sept. 3, the lowest level since mid-July, the Labor Department said on Thursday. Economists had forecast first-time applications for jobless benefits rising to 265,000 in the latest week.
It was the 79th straight week that claims remained below the 300,000 threshold, which is associated with robust labor market conditions. That is the longest stretch since 1970, when the labor market was much smaller.
ECB keeps interest rates unchanged
The European Central Bank (ECB) kept its stimulus programme unchanged yesterday, in a sign that policymakers do not see an immediate danger to the euro zone recovery from risks including Britain's decision to leave the European Union.
The bank's governing council left the main refinancing rate at zero, the deposit rate at minus 0.4 per cent and asset purchases at €80 billion (S$121 billion) a month, with ECB president Mario Draghi saying the bank is studying how it might potentially change its asset-buying programme.
The ECB slightly upgraded its euro zone growth forecast to 1.7 percent from 1.6 percent this year, but downgraded it to1.6 percent from 1.7 percent for both 2017 and 2018. Its forecast for a modest takeoff in inflation to 1.2 percent next year and 1.6 percent in 2018 were barely changed.
Oil soars, Brent hits $50/bbl as U.S. Gulf imports hit record low
Oil prices surged over 4 percent on Thursday, with Brent briefly touching $50 a barrel for the first time in two weeks, after a surprisingly huge drawdown in U.S. crude stocks as Gulf Coast imports slumped to a record low.
Brent LCOc1 rose $2.01, or 4.2 percent, to settle at $49.99 a barrel, its highest close in almost three weeks.
U.S. crude CLc1 ended at $47.62 per barrel, up $2.12, or 4.7 percent, the biggest daily percentage gain for U.S. futures since April.
U.S. crude stocks dropped 14.5 million barrels last week to 511.4 million barrels, the biggest weekly drop in stockpiles since January 1999, according to government data.
Imports into the U.S. Gulf Coast fell to 2.5 million barrels per day, the lowest since data collection began in 1990. [EIA/S]
Traders said the imports fell as ships delayed offloading cargos in Texas and Louisiana due to Tropical Storm Hermine.
Reference: Reuters, CNBC, Straits Times
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