The Labor Department showed an increase in initial jobless claims last week. The number of Americans filing claims for unemployment benefits in the week ended Nov. 30 was 224,000, compared with 215,000 the week before. Economists surveyed by The Wall Street Journal had expected 215,000 initial claims in the latest week. Continuing claims fell to 1.87 million, compared with 1.9 million the week before. The data showed an increase in initial claims, but fairly stable. The November jobs report will be released on Friday. Analysts expect the November jobs report to show a sharp recovery in employment after October's employment data was affected by hurricanes and the Boeing strike.
U.S. bond yields lost some momentum and the dollar weakened after U.S. initial jobless claims data showed a possible weakening in the job market, strengthening the case for the Federal Reserve to cut interest rates. Initial jobless claims were 224,000 last week, higher than the expected 215,000. Nonfarm payrolls for November, which are expected to be released tomorrow, are expected to jump to 214,000 from 12,000 in October. The trade deficit narrowed to $73.8 billion in October, in line with expectations. The 10-year Treasury yield was 4.208% and the 2-year yield was 4.161%, both higher than yesterday. (Jinshi)