Thursday, October 14, 2010

More "Higher Than Expected" Jobless Claims

More "higher than unexpected" jobless claims this week. Also the trade deficit and inflation is up too and worries about China. The dollar is also at a record low against the Australian Dollar, the Singapore Dollar, Swiss Franc to name a few. Great times right now for all of us.

Yahoo! Finance/Reuters: New claims for jobless benefits unexpectedly rose last week, hardening the view the central bank will pump more money into the economy in hopes of boosting growth and lowering unemployment.

At the same time, record-high imports from China helped push the U.S. trade deficit wider in August, which could drag on U.S. growth and increase international tensions over trade and currency policy.

"We are basically plodding along at subpar growth. Overall, the whole data set is disappointing," said Omair Sharif, an economist with RBS Securities in Stamford, Connecticut.

The weak economic data kept the pressure on President Obama's Democratic party, which looks likely to lose control of the U.S. House of Representatives in November 2 elections, a Reuters-Ipsos poll projected on Wednesday.

U.S. stocks were lower at midday, weighed down by the data and a drop in bank stocks on concerns over the impact of a state probe of foreclosure practices.

The dollar hit a low for the year against a basket of major currencies on expectations the Federal Reserve will further ease monetary policy, but bond prices were little changed.

Initial claims for state unemployment benefits rose to a higher-than-expected 462,000 in the latest week, the Labor Department said on Thursday.

In a sign of modest improvement, the number of workers continuing to collect benefits after an initial week of aid dropped in the week ended October 2 to the lowest level since November 2008.

"Job growth is still weak and layoffs will continue," said economist Christopher Low at FTN Financial in New York.

Read the whole thing here

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