Data pointing to a slowdown in the U.S. services sector chip away at gains
By Claudia Assis, MarketWatch
SAN FRANCISCO (MarketWatch) — Crude-oil futures edged higher Thursday as investors cheered the European Central Bank’s surprise interest rate cut to try to stave off a full-blown recession.
Prices hang on by a thread, however, as a report showed the U.S. services sector expanded at a slower pace in October. Still, support was coming from data showing U.S. weekly jobless claims fell below 400,000, its lowest in six weeks. Read details on jobless claims
Crude for December delivery CL1Z +0.89% added 30 cents, or 0.3%, to $92.81 a barrel on the New York Mercantile Exchange. It had traded in the red for most of Asian trading hours.
The Institute for Supply Management reported its non-manufacturing index fell to 52.9% from 53.0% in September, catching markets by surprise as economists were looking for an increase to 53.5%.
Earlier Thursday, the ECB cut its key lending rate by a quarter point to 1.25%. Most analysts had expected the bank to keep the rates unchanged and only move to cut rates later in the year. Read more on ECB rate cut
ECB President Mario Draghi, who took the helm earlier this week, said the decision was unanimous and needed as risks for the euro zone’s economy grew.
The 17-nation euro-zone bloc has been battling a sovereign-debt crisis in its peripheral countries that has lasted for the better part of two years, with Greece in the forefront.
Claudia Assis is a San Francisco-based reporter for MarketWatch.
