US initial jobless claims unexpectedly fall by 15,000

Americans lined up for unemployment benefits at a decelerated pace in the week ended 19 October, according to the latest figures from the Labor Department.

Initial unemployment claims fell by 15,000 week-on-week to 227,000, the lowest reading so far this month and well below market expectations for a flat print of 242,000.

The reading gives weight to the opinion that the US labour market remains relatively resilient to restrictive interest rates by the Federal Reserve, strengthening bets that the central bank will refrain from enacting more aggressive rate cuts in upcoming meetings.

The four-week moving average, which aims to strip out week-to-week volatility, rose by 2,000 to 238,500, while continuing claims increased from 1.86m to 1.89m, the highest reading since mid-November 2021.

Reporting by Iain Gilbert at Sharecast.com