After climbing above the 30,000 handle yesterday, the Dow and all major U.S. indices fell on Wednesday, as jobless claims rose.
Weekly Initial jobless claims figures were released a day earlier this week, as the United States is set to celebrate Thanksgiving on Thursday.
Today’s numbers showed that claims for state unemployment benefits rose by 30,000 from last week’s figure, to come in at 778,000 for the week ending November 21st vs 730,000 expected.
This was the second consecutive weekly increase in claims, which had begun to fall from the highs seen in March.
EU prepared for No-deal Brexit, despite positive trade talks
With 4 weeks left before the UK’s divorce from the European Union is finalised, the two parties continue to engage in talks, with some progress being made.
Despite this, European Commission President, Ursula von der Leyen stated that, “The European Union is well prepared for a no-deal-scenario, but of course we prefer to have an agreement.”
She went on to add that, “With very little time ahead of us, we will do all in our power to reach an agreement. We are ready to be creative. But we are not ready to put into question the integrity of our single market”.
The DAX marginally dropped on the news, as many believe that a deal will be done come what may.
UK borrowing hits record high
The national lockdown in the United Kingdom is set to end in exactly a week from now, however the economic impact of this, has led to borrowing numbers reaching their highest levels since World War Two.
It was confirmed that the UK will borrow close to £400 billion in 2020, to help pay for the impact that the coronavirus has had to its economy.
In an address to parliament, Chancellor Rishi Sunak stated that, “Our health emergency is not yet over. And our economic emergency has only just begun, so our immediate priority is to protect people’s lives and livelihoods”.
The economy is expected to contract by 11.3% this year.
Quote of the day – “In certain markets, the cure for a low price, has always been a low price”.Rich Ellison
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Senior Market Analyst