Unemployment Claims Best Since 2008

Published by Filipe R. Costa on Fri, 12/10/2012 - 11:03
now hiring

Daily Market Commentary for October 12: US initial jobless claims are at a level last seen in February 2008. After several weeks without much change and staying in the upper 300,000, now jobless claims are at 339,000. Is the job market recovering?

The latest unemployment data showed some improvement from the last few reports as unemployment is now at 7.8%, but non-farm payrolls haven’t been enough to reduce it in a healthy way. Most of the gains in the unemployment rate have been attributed to people leaving the work force rather than a real gain in employment. With the initial claims decreasing for a level last seen before the financial crisis, we will need to have an eye on the evolution of these claims over the next few weeks. The number seen yesterday is most likely the result of some skew in the data rather than a real recovery but nevertheless it gave some enthusiasm to the markets and may be an important reference point.

Enthusiasm was huge in European markets with the FTSE closing 0.92% higher, the DAX up 1.06%, and many other in positive. In the US things went wrong during the day and the Dow closed  negative for the fourth day. the start was strong, helped by jobless claims, but concerns over global growth and the earnings season continue to scare investors.

The day was different from usual as the USD haven’t risen with the US equities weakness. The Aussie and the Euro remained quite strong during the US session and they are in uptrend even with a continuing market weakness. Today, weakness in equities continues as the main European indices have not been able to hold on any gains so far.

Name Last price Close Since QE3 Price % 5-Day % YTD %
Gold (LBM) $ 11/10/2012 1770.3 2.2 0.48 -1.09 12.98
FTSE 100 11/10/2012 5829.75 0.82 0.92 0.03 4.62
EUR/GBP - £ per Euro 11/10/2012 0.806 0.6 0.32 0.24 -3.26
EUR/USD - US$ per Euro 11/10/2012 1.2932 0.22 0.57 -0.62 -0.17
Dow Jones Industrial Average 11/10/2012 13326.4 -0.05 -0.14 -1.83 9.08
S&P 500 11/10/2012 1432.84 -0.26 0.02 -1.95 13.93
GBP/USD - US $ per £ 11/10/2012 1.6046 -0.37 0.25 -0.85 3.32
DAX (Xetra) 11/10/2012 7281.7 -0.84 1.06 -0.32 23.45
Crude oil (Brent) Composite 11/10/2012 113.32 -1.41 -0.11 1.58 5.5
Nasdaq 100 Index 11/10/2012 2719.21 -2.6 -0.34 -3.87 19.38
IBEX 35 11/10/2012 7734.7 -3.22 0.87 -1 -9.71
CAC 40 11/10/2012 3413.72 -3.67 1.42 0.37 8.04
Nikkei 225 11/10/2012 8546.75 -4.61 -0.58 -3.15 1.08
Crude oil (Light Sweet) Composite 11/10/2012 92.46 -4.63 1.31 1.1 -6.61
FTSE MIB 11/10/2012 15634.5 -4.78 1.25 0.79 3.61