US stocks erase year’s best rally on growth concerns

The S&P  500 Index plunged the most since April  on  concern that slowing growth in Europe will hurt the American economy as the Federal Reserve ends  its  bond  purchases.  The  S&P  500  dropped  2.1%  to  1,928.21.  The Dow lost 334.97 points (2%) to 16,659.25.

Jobless claims in US fall, with average at eight-year low

A  healthier  job  market  helped  spark  the  biggest  gain  in  Americans’ confidence in almost a year, raising prospects for the economy  at the start of fourth quarter. The number of people seeking jobless benefits averaged 287,750  in the four  weeks ended Oct. 4,  an eight-year  low, according to figures  from  the  Labor  Department.  First-time  claims  for  jobless  benefits unexpectedly dropped by 1,000 to 287,000 for the week ended Oct. 4.

Fed’s Lacker says inflation likely to rise even with slow growth

Federal Reserve Bank of Richmond President Jeffrey Lacker said inflation is  likely  to  continue  moving  up  gradually  even  as  growth  remains  below trend  at  2%  to  2.5%.  “Thankfully,  there  are  no  signs  that  business  and consumer expectations for future inflation have drifted away from 2%,”  he said.  The  Fed’s  preferred  gauge  of  inflation,  the  personal  consumption expenditures  price  index,  rose  1.5%  in  August  from  a  year  earlier  and hasn’t exceeded 2% since March 2012.

Draghi says investors see first ECB rate increase by 2017

Mario  Draghi  said  investors  predict  the  ECB  will  start  increasing  interest rates by 2017 as he pledged to expand stimulus measures if needed.  The ECB has introduced measures from negative interest rates and long-term loans to asset purchases to fend off deflation and rekindle growth. Draghi has  also  stressed  that  monetary  policy  will  fail  if  European  governments drag their feet on structural reforms.  Draghi has said he intends to steer the size of the ECB’s balance sheet back to the levels seen at the start of 2012, indicating an increase in assets of as much as €1trn (US$1.3trn).

BOE leaves interest rate at 0.5% as EU economy falters

The  BOE  kept  its  key  interest  rate  at  a  record  low  as  the  euro-area economy  stumbled  and  domestic  growth  showed  signs  of  losing momentum.  The  recent  deterioration  is  lending  weight  to  Governor  Mark Carney’s  argument  that  more  time  is  needed  to  shore  up  the  recovery. While the nine-member Monetary Policy Committee split on the need for an increase at the last two meetings, the majority voted to hold the key rate at 0.5%.

Economic growth will not reach its target this year

The  Finance  Ministry  has  approved  nearly  20  investments  to  stimulate economic growth this year, as August’s exports have been slow. According to  the  Permanent-Secretary  for  Finance  Rangsan  Srivorasart,  the  Thai economy  will only grow 1.7%  instead of the previous forecast of 2%  this year, as the Thai economy has not fully recovered yet.

WTI falls into bear market on demand outlook, Brent drops

WTI oil tumbled into a bear market on concern rising global supplies will be more  than  enough  to  meet  slowing  demand.  Brent  crude  slipped  to  the lowest level in 27 months. Brent for November delivery fell US$1.33 (1.5%) to US$90.05 a barrel.

Source: Bloomberg