Global economy gets a lift as AI chip boom meets low U.S. jobless claims

U.S. labor-market data added support for a steady growth outlook as first-time unemployment benefit applications fell to the lowest level since 1969. In the week ended July 18, initial claims dropped by 22,000 to 187,000, with continuing claims largely unchanged. In Europe, the ECB rejected an immediate rate increase; President Christine Lagarde instead signaled the groundwork for a possible hike in September after asking colleagues to assess new data. South Korea’s economy grew faster than expected in Q2, fueled by an AI-driven semiconductor boom. Exports in early July hit their highest value for any July on record, strengthening the case for further rate rises.