Wall Street soared after higher jobless claims curbed risk taking By Reuters

Wall Street soared after higher jobless claims curbed risk taking By Reuters

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© Reuters. FILE PHOTO: A man looks at an electrical board displaying the Nikkei index outside a brokerage in a commercial district in Tokyo, Japan, on June 21, 2021. REUTERS / Kim Kyung-Hoon

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By Jessica DiNapoli

NEW YORK (Reuters) – U.S. markets were mixed Thursday as a report showed jobless claims surged last week, while the country is still considering the economic impact of the COVID-19 pandemic and yields from safe haven assets, as US Treasuries

The Dow and Dow fell in response to two-month highs in the number of Americans filing new claims for unemployment benefits. The dollar also pulled away from recent highs in response to the news.

“The jobless claims data released this morning was soft and remains stubbornly high,” said Sean Bandazian, investment analyst at Cornerstone Wealth. “The market is probably taking in some volatility from the last few days. We had a quite considerable drop and then the recovery recovering 75% of what we lost on Friday and Monday. ”

There were increases in claims for unemployment benefits in California, Illinois, Kentucky, Michigan, Missouri and Texas. Some of these states have seen an increase in new coronavirus cases as the more contagious Delta variant spreads.

Still, the Labor Department’s weekly jobless claims report showed more people are returning to work, a trend that bodes well for the July employment report.

In Europe, stocks rose to near record highs on Thursday after the European Central Bank pledged to keep interest rates at record lows for longer to help the euro zone economy recover from COVID-19.

The STOXX Index of 600 leading European stocks gained 1% to 458.52 points, a surprising distance from its all-time high of 461.38 points reached last week.

In the late morning, it fell 57.14 points, or 0.16%, to 34,740.86, the S&P 500 lost 2.84 points, or 0.07%, to 4,355.85 and added 17.39 points, or 0.12%, to 14,649.34.

He went up 0.099%.

US Treasuries were practically flat. The yield on fell two basis points to 1,262%.

Earlier this week, a revived appetite for riskier assets came as concerns waned that the Delta variant of COVID-19 would seriously cripple the economic recovery, helping to drive up crude oil prices.

“Markets are caught in a pincer movement between concerns about higher inflation and lower growth and that will continue,” said Michael Hewson, chief market analyst at CMC Markets.

Chart: Inflation in the ECB’s target: https://fingfx.thomsonreuters.com/gfx/mkt/oakvebqagpr/CPI0101.PNG

OIL COMPANIES

Oil rose, extending strong gains made in previous sessions on expectations of tighter supplies through the end of the year as economies recover from the pandemic.

It was recently up 0.83% to $ 70.88 a barrel and stood at $ 72.83, an increase of 0.83% on the day.[O/R]

The MSCI All Country Stock Index was up 0.25%.

Gold added 0.1% to $ 1,805.81 an ounce.

Cryptocurrencies held firm after rebounding from lows when Tesla (NASDAQ 🙂 boss Elon Musk said the automaker would likely restart accepting bitcoin payments after due diligence on its energy use.

which was up 0.5% to $ 32,354.

In Asia, MSCI’s broader Asia-Pacific equity index outside of Japan ended up 1.2%.

Chart: Dollar Strength: https://fingfx.thomsonreuters.com/gfx/mkt/akpezgzjlvr/Pasted%20image%201626897217870.png

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