Oil Prices Rise by 2% Amid Slower Demand Growth Data from China
European stock markets closed with gains following new economic data from the U.S., indicating a slower-than-expected increase in wholesale prices in July. This raises the likelihood that the Federal Reserve will take the long-anticipated step of reducing interest rates, according to reports.
The pan-European Stoxx 600 index closed trading on Tuesday, August 13, at 501.66 points, reflecting an increase of 0.52%. The healthcare sector led the gains, rising by 1%, although increases were limited by a 0.5% decline in the mining sector.
The German DAX added 0.48% to its value, ending the session at 17,812.05 points. Meanwhile, the CAC 40 closed at 7,275.87 points, marking an increase of 0.35%.
The leading index of the London Stock Exchange, the FTSE 100, recorded a rise of 0.3%, closing at 8,235.23 points. This performance was influenced by labor market data from the UK, which revealed a drop in unemployment to 4.2% in July, surprising analysts. A Reuters survey had expected a rise to 4.5%. At the same time, wage growth slowed to 5.4% in the second quarter, marking the slowest pace in the past two years.
The data on the UK labor market led to an appreciation of the British pound in international currency markets, trading at $1.2831. One euro is exchanged for $1.096.
Oil Prices Decline Amid Limited Global Demand Expectations
Oil prices fell by nearly 2% against expectations of limited global oil demand. Investors in the oil markets focused on forecasts from OPEC and the International Energy Agency (IEA), which indicated a slowdown in fuel and oil demand growth in the world’s largest consumer, China. This overshadowed the tensions between Iran and Israel that have influenced trading in recent weeks.
Brent crude reached a price of $80.85 per barrel by the end of European trading. Meanwhile, West Texas Intermediate (WTI) crude was priced at $78.52 per barrel.
The price of gold recorded a slight increase of 0.18%, reaching $2,508.50 per troy ounce.
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