Central banks hold rates steady as oil prices rebound

Central banks hold rates steady as oil prices rebound

KUWAIT: Economic activity in the US services sector continued to expand in August, marking the eighth consecutive month of expansion. The ISM service PMI rose from 52.7 to 54.5, coming in above market expectations of 52.5 and reaching a 6-month high. The reading also signaled renewed inflationary pressures as input prices rose to a 4-month high following higher energy prices. The services sector has been vital in supporting a strong first half of the year for economic growth in the US.

Unemployment claims

Initial unemployment claims decreased to 216,000 from 229,000 previously, considerably lower than market expectations of 232,000. This comes on the back of a resilient year for the labor market, even with a gradual softening in recent readings due to an increase in labor force participation. Despite this, claims data can be choppy, with the last two readings being revised. The greenback has gained 1.39 percent over the week as other currencies weaken, last trading at 105.09.

Oil cut extensions

Saudi Arabia and Russia announced on Tuesday that they would voluntarily extend their oil production cuts of 1 million barrels per day and 300,000 barrels per day respectively until January 2024. Oil prices went up significantly marking $90 a barrel for the