Oil prices increased by more than 2% on Thursday as producers evaluated the effects of Hurricane Francine on production in the U.S. Gulf of Mexico. The hurricane had disrupted offshore oil operations before being downgraded to a tropical storm. As a result, more than 730,000 barrels per day of Gulf of Mexico oil production were halted. U.S. West Texas Intermediate crude futures climbed by 2.5% to close at $68.97 per barrel, while Brent crude futures rose by 1.9% to $71.97 per barrel.
Wall Street Gains, Gold Hits Record High
On Thursday, Wall Street saw modest gains and gold hit a record high as investors anticipated a Federal Reserve interest rate cut next week. U.S. stock indexes fluctuated throughout the day but ultimately closed higher, bolstered by a rate cut from the European Central Bank. The Dow Jones Industrial Average increased by 0.58%, the S&P 500 rose by 0.75%, and the Nasdaq Composite gained 1% thanks to robust performance from tech stocks while the MSCI’s global stock index was up 1.08%.
ECB lowers rate by 25bps
The European Central Bank reduced interest rates again and signaled a declining path for borrowing costs in the coming months due to slowing inflation and weakening economic growth in the euro zone. The ECB cut its deposit rate by 25 basis points to 3.50%, following a similar reduction in June. With inflation nearing its 2% target and the domestic economy facing a potential recession, the move reflects ongoing efforts to support economic stability.
India’s August Inflation Below 4% Amid Rising Vegetable Prices
India’s August retail inflation remained below the central bank’s target of 4% for the second consecutive month, but vegetable prices continued to soar, dampening hopes of a dovish stance in the next monetary policy meeting. Annual retail inflation was at 3.65% in August, higher than the revised 3.60% in July. India’s key inflation gauge slipped below the Reserve Bank of India’s 4% target in July after a gap of nearly five years, largely due to the high-base effect.
