US jobless claims continue to cast a positive glow on the outlook for the labor market. Today’s weekly update shows that new filings for unemployment benefits fell a solid 13,000 to a seasonally adjusted 263,000 for the week through Oct. 3. That leaves claims only modestly higher than the four-decade low of 255,000 that was touched back in July. In short, this leading indicator is effectively telling us that the recent worries about the macro trend are excessive.
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Foreign equities have had a strong run over the past week (5 trading days), with most of the major regional markets besting US stocks, based on a set of ETFs in unhedged US-dollar terms. Is this a sign that the ex-US equity space is due to outperform? Maybe, although there’s still plenty of ground to cover to catch up with the long-dominant American stock market. There’s also the macro factor lurking–slower global growth.
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● US consumer borrowing in Aug rises at slowest pace in 6 mos. | Bloomberg
● Gallup’s US Job Creation Index unchanged at 7-year high in Sep | Gallup
● Strong demand for US 10yr Note auction | Reuters
● US mortgage applications soar on regulation worry | CNBC
● German exports tumble in August | Bloomberg
● BoJ Monthly Report: Japan’s moderate recovery will continue | RTT