US jobless claims unexpectedly drop to 42-year low

The number of first time unemployment benefits claimants in the US unexpectedly fell last week to match the lowest level in 42 years.

According to the Department of Labor, new claims declined by 7,000 in the week ended 10 October to 255,000, compared with analysts' expectations for a modest increase to 270,000.

Meanwhile, the four-week average, which is considered more reliable as it smooths out sharp fluctuations in the more volatile weekly figures, came in at 265,000, down 2,250 from the previous week’s 267,250.

Continuing claims were down 50,000 from the previous week.