Sag in American jobless claims hints at labor market strength
The previous week the overall number of US citizens filing for unemployment benefits decreased. Financial analysts consider it to be an evident indication that the US labor market is firm enough notwithstanding tensions between America and its trading partners, which have provoked tit-for-tat duties.
Initial claims for state unemployment benefits headed south by 2,000 reaching a seasonally updated 210,000 by August 18. That’s what the Labor Department revealed on Thursday.
It turned out to be the week of dips in a row for claims that have sunk so low that market experts have scrambled for explanations. Claims slumped to their lowest value since 1969 in July even although the workforce happens to be much larger than in previous decades.
Financial analysts surveyed by Reuters ahead of Thursday's news had foreseen claims jumping to up to 215,000 in the latest week.
Prices of longer-dated American Treasuries were trading a bit higher. As for American stock prices, they turned out to be mixed. Eventually, the evergreen buck rallied versus a pack of its rivals.
A separate report from the Commerce Department disclosing a sag in sales of new homes provided fresh sings of a decelerating American housing market.
However, the strength in the American labor market has appeared to be a major reason behind the key US bank’s everlasting campaign to lift interest rates.
Uncovered on Wednesday, minutes of the American key financial institution’s last policy gathering disclosed that policymakers debated lifting rates soon to withstand excessive economic strength. However, they also examined how global trade clashes could affect households and businesses.
The major bank has already had rates lifted twice in 2018 and it’s generally anticipated to this again in September.
Market experts tell that a firm economy is assisting the labor market in weathering the trade storm.
On Friday, European stock indices fluctuated at the beginning of the trading session…
The Reserve Bank of New Zealand will hold a meeting at 00:00 MT time on August 9.