It made no significant changes to its forecasts, edging up its GDP growth estimate this year to 1.7per cent from 1.6 per cent previously and going the opposite direction for 2017 and 2018, cutting the forecast for both years to 1.6 per cent from 1.7 per cent previously.
Advertisement
The U.S. government said on August 29 that 11.5 percent of Gulf of Mexico output was shut in as a precautionary measure. (CHK) closing up almost 14%, Diamond Offshore Drilling Inc.(DO) gaining 9%, Apache Corp.(APA) and Southwest Energy Co.(SWN) both surging 7.1%, and Murphy Oil Corp.(MUR) closing up 6.8%.
Benchmark Brent crude oil was up 65 cents a barrel at $48.63, after settling up 72 cents on Wednesday.
A 2.5-percent decline in shares of Apple weighed on each of the three major US stock indexes in the wake of its annual event on Wednesday. That means the 10-year yield was 84 basis points higher than the two-year yield, a move driven by the jump in longer-dated borrowing costs. Brent crude, used to price global oils, rose 59 cents to $48.56 in London.
It has managed to prop up growth, but not enough, and even shaved some of its forecasts on Thursday, reinforcing market expectations that more monetary stimulus is just a matter of time.
After the decision was released, President Mario Draghi spoke at the post-decision press conference and provided more much more color to the ECB’s thinking. He urged governments to do their part.
“The market is disappointed with the lack of European Central Bank action”, said BNP Paribas rates strategist Patrick Jacq. Market bears have groused that major US stock-market indexes trading near record levels are not underpinned by strong corporate quarterly results and are likely due for a more pronounced selloff.
Its failure to act knocked Germany’s DAX index half a percent lower on the day, pulling pan-European indices of blue chip companies down by around a quarter of a percent. Portuguese yields rose a similar amount to 3.17 percent – their highest in nearly two months.
Hong Kong’s Hang Seng Index climbed 0.4 per cent to the highest level since Aug 2015. The Kospi index in Seoul fell 1.3 percent to 2,037.87.
In other energy trading, wholesale gasoline rose 7 cents, or 5.2 percent, to $1.42 a gallon.
ASIA’S DAY: Japan’s Nikkei 225 index fell 0.3 percent to 16,958.77 and Sydney’s S&P-ASX 200 fell 0.7 percent to 5,385.80. Heating oil added 6 cents, or 3.9 percent, to $1.48 a gallon.
Outside of the blue chips, pub chain operator J.D. Wetherspoon rose 4.3 percent after reporting better-than-expected results. Copper held steady at $2.10 a pound.
Advertisement
The rise in USA bond yields widened the yield gap between the US and Japan and lifted the dollar against the yen to 102.31 yen JPY= from around 101.60. The euro strengthened to $1.1274 from $1.1245.
