Oil Prices Drop Amid Concerns Over Reduced Demand in China
Oil prices have sharply declined as fears surrounding diminished demand in China overshadow tensions in the Middle East. West Texas Intermediate (WTI) crude oil fell by 2.14% to $78.35 per barrel. Since the beginning of the year, this grade has seen a 9.3% increase in value.
Meanwhile, another major oil benchmark, Brent crude, has risen by 4.7% since the start of the year. However, during today’s session, its price decreased by 1.96% to $80.69 per barrel.
Wall Street Reacts to Inflation Reports
The first of two inflation reports from the United States, anticipated this week, has sparked significant activity on Wall Street. The Bureau of Labor Statistics at the Department of Labor released wholesale price data indicating a 0.1% increase in July. Market analysts were expecting a rise of around 0.2%, according to reports.
Later this week, consumer inflation data will be released, which is expected to influence the direction of the next Federal Reserve meeting. Positive expectations have also contributed to gains in European stock markets earlier today.
The Dow Jones Industrial Average rose by 1.04% to 39,765.64 points, while the broader S&P 500 index increased by 1.68% to 5,434.42 points. Both indices remain approximately 4% below their peak levels.
On August 13, the Nasdaq Composite surged by 2.43% to 17,187.61 points. Among the day’s top performers was Starbucks, whose shares soared by 24.5% to $95.90 following news of a leadership change.
Currency and Gold Market Updates
In currency markets, the euro strengthened in anticipation of the U.S. inflation data, trading at $1.0997. The British pound was valued at $1.2866, bolstered by positive employment data from the UK.
Gold prices remained stable, hovering just below the historical peak reached in July, which was $2,506.90 per ounce.
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