US initial weekly unemployment claims retreat by 10,000

Initial weekly unemployment claims in the US fell by 10,000 over the week ending on 2 January to reach 277,000, according to the US Department of Labor.

Economists had pencilled in a slightly larger drop to 275,000.

The reading for the previous week was unrevised at 278,000.

A four-week moving average of claims, which smoothes out the volatility in the weekly figures, slipped by 1,250 to reach 275,750.

Secondary unemployment claims, those which have not been filed for the first time and referencing the week ended on 26 December, rose by 25,000 to 2.23m.