US labor department reports that jobless claims have dropped to last year lows

The Dow Jones hit a record high on Thursday as U.S. weekly jobless claims fell to their lowest level since last year.

Figures released by the Labor Department highlighted that claims for state unemployment fell by 92,000 last week, to 498,000 applications

Today’s number was the lowest since March last year. When the U.S. government ordered lockdowns in many states across the country, forcing businesses to shut.

Further data also revealed that layoffs by U.S. based employers had fallen by 25% last month to 22,913. Which is the fewest since 2000.

As of writing the Dow Jones was trading 0.90% higher, with the S&P 500 up 0.50%.

Bank of England keeps rates unchanged

The Bank of England today announced that it would be keeping interest rates unchanged despite recent economic growth.

Recent data from the UK shows all major economic indicators are performing better than expected. The news comes as the country started easing lockdown restrictions last month.

Although rates remain unchanged. The BOE decided to ease its Asset Purchasing Program to £3.4 billion per week from the current sum of £4.4 billion per week.

In a statement regarding today’s decisions, the bank stated. “The Committee does not intend to tighten monetary policy. At least until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2% inflation target sustainably“.

The FTSE 100 was up 0.52% on the news.

Oil price slips despite declining inventories

After rising for most of the last 10 days, oil prices fell for the second consecutive day on Thursday as demand concerns from India worsened.

Many expected that prices to rise after the Energy Information Administration informed that Crude inventories fell by 8 million barrels to 485.1 million barrels in the week to April 30th.

This comes as markets expected a drop of 2.3 million barrels. It still was not enough to stabilize prices which fell as India recorded over 400,000 cases of COVID-19 in the last 24 hours.

As of writing, WTI Crude hit an intraday low of $64.46, with Brent trading as low as $68.28.

Quote of the day – “Sheer will and determination is no substitute for something that actually works.”

– Jason Klatt

Eliman Dambell

Senior Market Analyst
edambell@tvmarkets.com