Jobless claims spike while oil prices rise again
|A rise in weekly US jobless claims stole the limelight from today’s inflation print, while geopolitical tensions have bolstered oil once again, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Rise in jobless claims outweighs CPI reading
“Today’s US inflation data was quickly discarded in favour of a focus on the rise in jobless claims. Initial claims hit their highest level since June 2023, having risen for a second week in a row. This contrasts sharply with last week’s solid payrolls data, leaving investors in a bind. Last night’s Fed minutes gave the dollar a boost, but a few more weeks of rising claims could see the case for a 50bps cut revived.”
Oil prices rebound on Mid-East tensions
“It looks increasingly likely that Israel will go for a large-scale attack on Iran, as reports emerge of Gulf states lobbying the US to rein in its ally. Oil prices have surged on hints that Israel is seeking to take advantage of the Iranian attack to deliver a major strike on its opponent. The consequences of that could include a closing of the Straits of Hormuz, leading to major disruption to oil supplies.”
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