US initial jobless claims rise less than forecast

US jobless claims rose less than expected last week, the Labor Department revealed on Thursday.

Initial jobless claims increased 2,000 to a seasonally adjusted 263,000 in the week ended 27 August, compared to analysts’ forecasts of 265,000. The previous week’s reading was unrevised.

The four-week moving average dropped 1,000 to 263,000 following the previous week's unrevised average of 264,000.

The figures come ahead of the all-important US non-farm payrolls report on Friday, which will be closely monitored after Federal Reserve chair Janet Yellen said the next interest rate hike depends on the strength of incoming data.

A solid monthly jobs report is likely to add to speculation that an interest rate rise is possible at the Fed’s 20-21 September policy meeting.