Oil prices climbed to a one-week high after U.S. President Donald Trump warned of “severe consequences” if his talks with Russian President Vladimir Putin on Ukraine fail, and on optimism that a likely U.S. interest rate cut next month could spur oil demand.
Gold prices fell as hotter-than-expected U.S. inflation data and a drop in jobless claims lifted the dollar and Treasury yields, trimming the odds of a supersized September rate cut.
The U.S. dollar rose across the board as data showed U.S. producer prices increased more than expected in July amid a surge in the costs of services and goods, suggesting a broader pickup in inflation in the months ahead.
Oil prices fell to over two-month lows after bearish supply guidance from the U.S. government and the International Energy Agency, while investors eyed U.S. President Donald Trump’s threat of “severe consequences” if Russia’s Putin blocked peace in Ukraine.
European investors have put more money into local stock index-trackers so far in 2025 than in any full-year on record, with demand for defence funds booming, data shows, as President Donald Trump’s erratic trade policy hits their appetite for U.S. shares.
The pound rose to three-week highs against the dollar, as investors grew increasingly convinced that U.S. interest rates are likely to fall more quickly than British ones, following a benign reading of U.S. inflation.
