Unemployment Claims Show Further Economic Strain: Live Updates

The latest data on joblessness in the eurozone, released Wednesday, showed the unemployment rate in April was 7.3 percent, a number that reflects the government-backed furlough programs designed to curb mass unemployment. But many national financial support programs are set to begin scaling back soon, making it likely that joblessness will grow higher over the coming months, economists said.

Wall Street set to dip as global markets waver.

Stocks on Wall Street were poised for a drop, and European markets were lower on Thursday, as the overall number of U.S. workers on state jobless rolls increased last week, signaling continued strain on the economy even as some businesses reopen.

Futures for the SP 500 were indicating a lower open on Wall Street and an end to a four-day rally. Markets in Europe were mostly flat, after a muted trading day in Asia.

The U.S. Labor Department’s jobless claims data showed a declining, though still large, amount of filings for unemployment benefits last week.

Investors were also considering the European Central Bank’s announcement on Thursday that it would expand its stimulus measures more than expected, stepping up bond purchases by another 600 billion euros, or $675 billion, to address economic distress caused by the virus outbreak.

Stocks have been buoyed by recovery hopes in recent weeks, with the SP 500 rising to within 10 percent of its pre-pandemic highs, while stocks in Europe are back to where they stood in early March. Investors have been inspired by signs of a quick return of normal activity — even if not to levels seen before government-imposed shutdowns and social-distancing orders. Companies, from automakers to restaurants, have reported that sales are beginning to pick up.

Still, the bad news has been relentless, from unrest in the United States to continuing tensions between Washington and Beijing. Market watchers had been expecting investors to take a break.

Article source: https://www.nytimes.com/2020/06/04/business/unemployment-jobless-claims-coronavirus.html