In the United States, recent economic data showed an increase in first-time applications for unemployment benefits and a rise in the number of people on jobless rolls to a 2.5-year high at the end of June. The ADP Employment report indicated that private payrolls only increased by 150,000 jobs in June, below the consensus of 160,000, following an increase of 157,000 in May. Additionally, the ISM Non-Manufacturing index fell to a four-year low of 48.8 in June, well below the consensus of 52.5.
Despite this weaker economic data, analysts believe that it may prompt the Federal Reserve to consider cutting rates. ANZ Research analysts stated that the recent data aligns with the Fed’s easing bias, suggesting that a slower growth momentum could lead to disinflationary pressures in the coming months and paving the way for rate cuts.
On Thursday, oil prices fell following these weaker-than-expected U.S. employment and business activity data, signaling a potential cooling of the economy in the top oil-consuming nation. Brent crude futures dropped by 30 cents or 0.34% to $87.04 per barrel while U.S West Texas Intermediate (WTI) crude futures fell by 32 cents or 0.38% to $83.56 per barrel with trading activity reduced due to US Fourth of July holiday
