U.S Data
U.S. retail sales fell more than expected in August amid weak purchases of automobiles and a range of other goods, pointing to cooling domestic demand that could further diminish expectations of a Federal Reserve interest rate increase next week.
The Commerce Department said on Thursday retail sales declined 0.3 percent after an upwardly revised 0.1 percent gain in July. Retail sales in July were previously reported to have been unchanged.
Sales were up 1.9 percent from a year ago. Excluding automobiles, gasoline, building materials and food services, retail sales slipped 0.1 percent last month after a downwardly revised 0.1 percent drop in July.
U.S. producer prices were flat in August as the cost of energy products declined and trade services fell, but underlying producer inflation firmed.
The Labor Department said on Thursday the unchanged reading in its producer price index for final demand followed a 0.4 percent drop in July. In the 12 months through August, the PPI was unchanged after decreasing 0.2 percent in July.
Manufacturing in New York state remained weak in September as factories reported fewer new orders, lower shipments and reduced staffing levels.
A separate report on the September Philadelphia Fed Business Index came in at a much-higher-than-expected 12.8, up from a 2.0 reading a month earlier. Economists had expected a flat reading for the month.
U.S. industrial production fell more than expected in August, hurt in part by a sharp decline in utilities output, the Federal Reserve said on Thursday.
Industrial output fell 0.4 percent last month after a downwardly revised 0.6 percent increase in July. Last month, manufacturing output also declined 0.4 percent.
BOE
The Bank of England opted to hold base interest rates at record lows on Thursday and to maintain the size of its newly enlarged asset-purchasing program.
The bank's Monetary Policy Committee (MPC) voted unanimously in September to hold the base rate at 0.25 percent, which was cut in August. It also voted unanimously to maintain the size of its corporate bonds purchases at up to £10 billion ($13.2 billion) and government bond purchases at £435 billion.
In addition, it upgraded its growth forecast for the third quarter to 0.3 percent from 0.1 percent, which it predicted last month.
"Since the August inflation report, a number of indicators of near-term economic activity have been somewhat stronger than expected. The committee now expect less of a slowing in U.K. GDP (gross domestic product) growth in the second half of 2016," the bank said in the minutes from its latest meeting.
The minutes showed that the majority of members expected to vote for a further cut in the base rate before the end of the year. This would likely take the rate to just above zero.
OIL
Oil headed for a weekly loss on speculation a global crude glut will persist as disrupted supply returns and demand growth slows.
Futures fell 0.5 percent in New York, extending a weekly decline to 4.8 percent. OPEC members Libya and Nigeria, whose supplies have been reduced by domestic conflicts, are preparing to boost exports within weeks. The oil surplus will last longer than previously thought as demand growth slumps and output proves resilient, the International Energy Agency said Tuesday.
Brent for November settlement fell as much as 0.8 percent to $46.23 a barrel on the London-based ICE Futures Europe exchange. Prices advanced 74 cents, or 1.6 percent, to settle at $46.59 on Thursday. The global benchmark traded at a $2.05 premium to WTI for November delivery.
Reference: Bloomberg, CNBC
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