US GDP Increases by 2.0% | Euro Hits Multi-Year Lows
Published September 26, 2019
The US administration has imposed penalties against a handful of Chinese tanker firms for continuing to carry Iranian crude after sanctions waivers lapsed in May. The move could also complicate trade talks between the US and China the world’s largest oil buyer. West Texas Intermediate is currently trading lower this morning at $55.90 a barrel.
The euro has dropped to a multi-year low against the greenback this morning: 1.0926. The euro has been under pressure after disappointing data releases earlier in the week. Specifically, German manufacturing PMI figures were worryingly weak despite German IFO business sentiment moderately improving.
US unemployment claims were published this morning. Advance figures for seasonally adjusted initial claims came in at 213,000, an increase of 3,000 from the previous week’s revised level (up by 2,000, from 208,000 to 210,000).
US real gross domestic product increased at an annual rate of 2.0% in the second quarter of 2019. In the first quarter, real GDP increased by only 3.1%. Downward revisions to personal consumption expenditures and nonresidential fixed investment were primarily the major factors for the upward revisions of state and local government spending and exports.