Broadgate: Market News 9/4
9 April 2012
In the United States, prices starting to creep upward shows the deep wounds from the credit crisis are slowly healing and the U.S. economy is well on the road to recovery.
The evidence is scattered but it also shows up in some national reports. Consumer inflation, after stripping out volatile food and energy prices, has edged upward over the past year and now is running just above the Federal Reserve’s 2 percent target.
Workers’ pay is nudging higher as the labor market gradually improves. Hourly earnings have grown at an average annual rate of 2 percent since last May and posted a 2.1 percent gain last month, up from a 1.8 percent pace a year earlier.
U.S. job growth slowed to 120,000 jobs last month, the Labor Department said on Friday, the smallest increase since October.
The disappointing figures rekindled market speculation that the Fed may eventually launch another bond-buying program, and weighed on the dollar against the yen
OPEC is seeking a balance in world oil prices, but political instability rather than production issues are affecting the market price, Iraq’s oil minister Abdul Kareem Luaibi said on Monday.
“OPEC is still doing its best to produce enough crude to meet demand but political issues are affecting prices. World prices are affected more by political instability than by production issues,” he told reporters.
Luaibi said he expected Iraq’s oil exports to be at 2.3 million barrels per day or slightly more in April.
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