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The U.S. and European stock markets delivered gains across the board as the favorable jobs report showed that initial unemployment insurance claims had fallen 3.1%, elevating the streak to the third consecutive week that initial unemployment claims fall.
The news leads investors to conclude that the degree of the Delta variant of COVID-19 is not causing economic harm as predicted.
To that end, the alleged economic slowdown is not showing its ugly head, so now investors’ attention is on the threat of high and persistent inflation.
Several Key economic benchmarks reported:
- U.S. Initial Claims for Unemployment Insurance fell to 375,000, down from 387,000 last week, a drop of 3.1% from the previous week.
- U.S. Producer Price Index YoY rose to 7.77%, compared to 7.31% last month, or higher than the long-term average of 1.75%.
- U.S. Producer Price Index MoM increased to 1.03%, compared to 0.96% last month, or higher than the long-term average of 0.17%.
- European Union Industrial Production Index YoY improved slightly to -1.90%, compared to -3.20% last month. This figure is lower than the long-term average of 2.84%.
Eurozone Summary for August 12:
- Stoxx 600 closed at 474.88 up 0.56 points, or 0.12%.
- FTSE 100 closed at 7,193.23, down 26.91 points, or 0.37%
- Dax Index closed at 15,937.51, up 111.42 points, or 0.70%.
Wall Street summary for August 12:
- The Dow Jones Industrial Average closed at 35,499.85, up 14.88 points, or 0.04%.
- The Standard & Poor’s 500 closed at 4,460.83, up 13.13 points, or 0.30%.
- The Nasdaq Composite Index closed at 14,816.26, up 51.13 points, or 0.35%.
- The Birling Capital Puerto Rico Stock Index closed at 2,626.83, up 28.87 points, or 1.11%.
- The U.S. Treasury 10-year note closed at 1.36%.
- The U.S. Treasury 2-year note closed at 0.23%.