Chinese inflation falls to two-year low

Brent crude fell to a fresh 47-month low on Wednesday before recovering to around US$84 a barrel, as faltering global growth curbed demand for fuel at a time of heavy oversupply. Oil saw its biggest daily fall in more than three years on Tuesday after the West’s energy watchdog slashed its forecasts for world oil demand for this year and 2015. Core members of the Organization of the Petroleum Exporting Countries appear to be focused on fighting for market share rather than on cutting production to shore up prices.

WASHINGTON (AP) — The Federal Reserve is keeping U.S. interest rates at record lows in the face of persistent threats from a weak international economy and excessively low inflation.Fed officials said Wednesday that the U.S. economy is still expanding modestly. But in a nod to recent weaker data, they said in a statement that the pace of job gains had slowed — an indication that they may be concerned about the pace of hiring.

WASHINGTON — U.S. job growth rose less than expected in August, which could dim prospects of a Federal Reserve interest rate hike later this month, even as the unemployment rate dropped to a near 7-1/2-year low of 5.1 per cent and wages accelerated. Nonfarm payrolls increased 173,000 last month as the manufacturing sector lost the most jobs since July 2013, after an upwardly revised 245,000 rise in July, the Labor Department said on Friday. It was the smallest gain in employment in five months.

LONDON — Brent and U.S. WTI crude oil prices fell to their lowest levels in almost six years on Tuesday as a big OPEC producer stood by the group’s decision not to cut output to tackle a glut in the market. Oil prices have fallen 60 per cent from their June 2014 peaks, driven down by rising production, particularly U.S. shale oil, and weaker-than-expected demand in Europe and Asia.

OTTAWA — The global economy is growing at a stubbornly weak pace and governments should be deploying fiscal tools alongside monetary policy to stoke growth, the Organisation for Economic Co-operation and Development said in its latest outlook Thursday.

Despite much hopeful banter among the mainstream media, Goldman forecast nonfarm payroll job growth of 220k in June, notably below consensus expectations of 234k.  

China’s slowdown appears to have bigger repercussions for other countries than had been expected, the IMF said. The troubles in China have sent the prices of commodities such as oil and copper sliding, and, according to The BBC, the falls have hit exporters of commodities, such as Brazil and Russia, particularly hard.