News Column

Initial Jobless Claims Surpass Analysts' Forecast

October 10, 2013 Financial Markets

unemployment line

U.S. initial jobless claims for last week came in higher than the median forecast, amid efforts from lawmakers to break the political impasse which pushed the country into its 10th day of a partial shutdown.

First-time applicants for jobless benefits rose to 374,000 in the week ended Oct. 5 from a revised of 308,000, compared to median forecast of 311,000, the Labor Department said Thursday.

The data is considered downbeat and may give a bad indication about the labor market, especially as the government shutdown has caused the delay of the nonfarm payrolls for September, which was supposed to be released on Oct. 4.

Meanwhile, there is some improvement in the sentiment as House Republican and Senate Democratic leaders mentioned yesterday they are ready for a short-term increase in the $16.7 trillion debt ceiling, where President Obama is set to meet Republicans leaders.

Obama said he is ready for negotiations with Republicans over various issues if they agreed to end the political deadlock that pushed the country into its ninth day of a partial shutdown.

Senate Democrats are preparing a test vote later this week to push the debt-ceiling conflict into 2015.

U.S. shares gained for a second day on Wednesday after Obama nominated Janet Yellen to head the Federal Reserve after Ben Bernanke's term expires in January, given her propensity to slackness in terms of withdrawing stimulus.

Fed minutes showed a wide debate among policymakers regarding the scainge back of nonstandard measures as some warned a delay could "undermine the credibility" of Fed policies.

As of 12:35 GMT, the U.S. dollar inched down against a basket of major currencies as the dollar index hovered around 80.47 after hitting a high of 80.67.

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Original headline: U.S. initial jobless claims surpass analysts' forecast

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