US initial jobless claims drop to lowest level in almost three months

US first-time unemployment claims fell by 20,000 in the week ended 10 December, dropping to 211,000 - the lowest level since the end of September and well below market expectations of 230,000.

According to the Labor Department, jobless claims fell by 39,095 to 248,881 on a seasonally unadjusted basis, while the four-week moving average, which aims to strip out week-to-week volatility, fell by 3,000 to 227,250.

Continuing claims, on the other hand, edged up by 1,000 to 1.67m in the week ended 3 December.

Reporting by Iain Gilbert at Sharecast.com