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The major indices in the United States traded higher on Thursday as they broke their recent multi-day losing streak on the back of positive market sentiment.
Stocks indices such as the S&P500 and the Nasdaq100 traded higher by around 1 percent, while the Dow Jones Industrial Average traded higher by over 0.50%.
European stock averages were also buoyed with the GER40 and the CAC40 trading higher by around 0.90% intraday. The FTSE100 lagged behind with a 0.25% gain.
Accordingly, with the positive sentiment bias in play the United States dollar sold-off against the euro currency. However, sterling remained largely flat.
On the data front, US weekly unemployment benefits increased to 225,000 for the week ended December 24, according to Labour Department data released Thursday.
This was up 9,000 from the previous week’s tally of 216,000. Economists were expecting 225,000 initial claims, according to most experts estimates.
Weekly initial claims have been hovering at pre-pandemic levels for the last few months, only slightly above the 2019 weekly average of 218,000.
Continuing claims, which are filed by people who have received unemployment benefits for more than one week, increased to 1.71 million for the week ended December 17, from 1.67 million.
That latest continuing claims are now at their highest level since February. Therefore the mood switch to risk-on is clearly to do with the improved COVID-19 situation in China.
Weekly jobless claims are known to volatile, especially around the holiday season. It should also note that they are also frequently subject to revision.
