Daily Market Report 09/09/16


Yesterday Mario Draghi, chief of the European Central Bank (ECB), said the economic recovery in the Eurozone is likely to be dampened, partly because of the UK's Brexit vote.

Draghi was speaking at a press conference after the ECB left rates unchanged once again at the monthly meeting of the general council.

Draghi said the Euro area GDP improved in the second quarter and incoming data points to ongoing growth in the third quarter. "Looking ahead we continue to expect the economic recovery to proceed at a steady rate," he added.

However, Draghi said that recovery in the euro area would be hampered by subdued foreign demand, which is being driven in part by uncertainty arising from the outcome of the UK's EU referendum.


The weekly jobless claims figure revealed the number of Americans filing for unemployment benefits unexpectedly fell last week, pointing to sustained labour market strength even as the pace of job growth is slowing.

Some analysts speculated that despite signs of underlying labour market strength, also corroborated by record high job openings, August's slowdown in job growth, together with sluggish factory and services sector activity, could encourage the Federal Reserve to keep interest rates unchanged at its next policy meeting.

The crude oil inventories figure showed stocks slumped more than 14 million barrels last week in the biggest weekly drawdown since 1999 as imports to the Gulf Coast hit a record low, which analysts attributed to Tropical Storm Hermine.


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