US jobless claims rise..
Jobless claim rise as labour market struggles with slowing US economic activities.
Problems with US economy doesn’t seem to ending in any way. Unemployment benefits increased by 19000 last week to reach 479000 as reported by the Labour Department. This was the highest jobless claims since April making a 3- month high. Unemployment benefit claims declined sharply last year but this year that seem to have flattened out. Unemployment rate stood at 9.5% in June.
Labour market data is considered to be one of the most important indicator of economic health of the country. It looks like investors have become too cautious and too sensitive about the growth of US economy. Even the slightest disappointing data causes big volatile movement in Bond yields and stock prices.