Dhanvarsha: Choppy action in US markets

Thursday, November 25, 2010

Choppy action in US markets

Choppy action followed the release of several economic reports squeezed in before Thursday’s Thanksgiving holiday in the U.S. They included data from the Labor Department showing fist-time jobless claims dropped last week to their lowest level in more than two years.The U.S. dollar edged up against the euro and a basket of currencies Wednesday, as more worries over the euro zone’s debt outlook trumped some buoyancy in U.S. economic data.

The dollar had slid earlier in U.S. trading after a drop in jobless claims, which fed hopes that a U.S. recovery would do its part in helping the global economy strengthen, drew investors into higher-yielding currencies, stocks and commodities.

The Labor Department on Wednesday said 407,000 workers filed new applications for unemployment benefits last week, the lowest level in more than two years.

New claims declined by 34,000 to 407,000.

Economists polled by MarketWatch had expected initial claims to fall to a seasonally-adjusted 435,000 in the week ended Nov. 20.

Claims in the prior week were revised 2,000 higher to 441,000.

Jobless claims have fallen below 450,000 in four of the past five weeks — the first time that’s happened this year — and are now at their lowest level since July 2008.

http://www.marketwatch.com/story/dollar-slips-vs-rivals-in-asia-trade-2010-11-24?siteid=yhoof