- The euro strengthened against the dollar on Thursday after the European Central Bank (ECB) cut interest rates and ECB President Christine Lagarde reduced expectations for another rate cut next month, saying the bank would let economic data determine its next policy move.
- The ECB lowered its deposit rate to 3.5%, as widely expected. However, the refinancing rate was cut by a larger 60 basis points to 3.65% in a long-overdue technical adjustment.
- Gold prices jumped more than 1.5% to a record $2,554 an ounce on Thursday, boosted by expectations of a Federal Reserve interest rate cut amid signs of a slowing U.S. economy.
- The U.S. Labor Department said initial jobless claims rose by 2,000 to a seasonally adjusted 230,000. Meanwhile, U.S. producer prices rose slightly more than expected in August, as service costs rose, although the overall trend pointed to easing inflation.
- Oil prices rose more than 2% on Thursday as producers assessed the impact on production in the U.S. Gulf of Mexico after Hurricane Francine hit offshore oil production before being downgraded to a tropical storm.
- More than 730,000 barrels per day, or nearly 42%, of oil production in the Gulf of Mexico was shut down by Hurricane Francine on Thursday, the U.S. Bureau of Safety and Environmental Enforcement said.
- U.S. West Texas Intermediate crude futures rose $1.66, or 2.5%, to settle at $68.97 a barrel. Brent crude futures rose $1.36, or 1.9%, to settle at $71.97 a barrel.
- Wall Street’s main indexes closed higher on Thursday after fresh inflation data reinforced expectations for a 25 basis point interest rate cut by the Federal Reserve, while Moderna’s weak earnings forecast made it the biggest percentage loser on the S&P 500.
- The producer price index (PPI) for final demand rose 0.2% in August, compared with a 0.1% gain forecast. The core figure, which excludes volatile food and energy prices, rose 0.3%, above the 0.2% forecast. Separately, initial claims for state unemployment benefits came in at 230,000 for the week ended Sept. 7, matching estimates.
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