US Weekly Jobless Claims At Nine-Month Low; Labour Market Remains Tight  

• The number of Americans filing new claims for unemployment benefits fell to a nine-month low, with initial jobless claims dropping by 13,000 to 198,000. This is the lowest level since January and was unexpected.
• The decline in jobless claims adds to a series of positive economic indicators, including strong retail sales and factory production in September, suggesting continued momentum in the U.S. economy.
• The positive economic data has increased expectations that the Federal Reserve may maintain higher interest rates for a longer period. This is partially due to soaring U.S. Treasury yields, and financial markets do not expect a rate hike in the coming month.
• While the labour market is gradually cooling, conditions remain tight, and claims are at the lower end of the range for the year. The impact of recent United Auto Workers (UAW) strikes has been limited, with claims rising in Michigan during the week ending October 7.
• Stocks on Wall Street were trading higher, the dollar fell against a basket of currencies, and U.S. Treasury prices slipped, with the yield on the benchmark 10-year note approaching 5%, a level not seen since just before the financial crisis in 2007.

(Source: Reuters)