Oil markets fell significantly during Wednesday's session, ending in a month low despite dwindling crude oil stockpiles.
The Energy Information Administration reported that crude oil inventories dropped more than expected, going down by 9.4 million barrels. Analysts polled by S&P Global expected it to drop by 1.2 million barrels. In normal circumstances, this would have aided the markets but it turns out that markets already expected this drop given the arrival of Hurricane Laura to the Gulf of Mexico. The oil supply is also expected to recover at some point.
West Texas Intermediate crude oil futures dropped 2.92 percent during the session, closing at the 41.51 level. In the same way, Brent oil futures went down by 2.52 percent, closing at the 44.43 level.
Caixin/Markit services Purchasing Managers Index for China dropped to 54.0 in August after being at 54.1 in July, falling for the second consecutive month, and signaling a slower expansion of the Chinese services sector.
“The ongoing resumption of work and normalization of market demand continued to promote the post-pandemic economic recovery,” explained an analyst at Caixin.
The Manufacturing PMI, which was reported yesterday, stood at 53.1 in August, going up from July's 52.8. This signaled a quicker expansion of the manufacturing sector.
At the moment there are 26,184,512 confirmed coronavirus cases around the world, as well as 867,374 total deaths. The United States leads in the number of infections, with 6,290,737 total cases, as well as a death toll of 189,964, followed by Brazil, India, and Russia.
The US stock markets advanced on Wednesday's session. The Dow Jones Industrial Average gained 1.59 percent during the session, closing at the 29,100.50 level, while the S&P 500 advanced 1.54 percent, closing the session at the 3,580.84 level. In the same way, the Nasdaq 100 went up by 1.04 percent during the session, closing at the 12,420.54 level, while the NYSE Composite gained 1.24 percent, closing the session at the 13,276.74 level.
The French government recently announced a 100 billion euro stimulus plan (equivalent to around 4 percent of France's Gross Domestic Product) in order to face the consequences of the advance of the coronavirus outbreak. 35 billion were set apart to make France's economy more competitive, cutting business taxes, 25 billion are going to be employed to boost the labor market through wage subsidies, while 30 billion will be invested in environmental projects.
The Swiss Federal Statistical Office reported August's Consumer Price Index figure, which remained steady in yearly terms at -0.9 percent, below the analysts' expectations who foresaw it to be at -0.8 percent. Month-to-month, the Consumer Price Index remained unchanged at 0 percent, after being at -0.2 percent on the previous month and below the analysts' expectations who foresaw it to be at 0.1 percent.
By 7:25 GMT the DAX gained 1.39 percent, hitting the 13,427.55 level, followed by the CAC 40 which hit the 5,121.63 level, gaining 1.79 percent, and by the IBEX 35, going up by 1.73 percent and hitting the 7,118.00 level. In the same way, the Euro Stoxx 50 hit the 3,389.25 level, gaining 1.54 percent, followed by the UK 100 which went up by 1 percent, hitting the 971.4 level, while Italy 40 went up by 1.24 percent, hitting the 1,964.5 level.