US jobless claims hit two-month high

According to the Department of Labor, new claims rose by 16,000 to 276,000 in the week to 31 October, compared with analysts' expectations for a 260,000 reading.

Meanwhile, the average of new claims over the last four weeks rose by 3,500 to a seasonally adjusted 262,750, the report added.

The four-week average is considered more reliable as it smooths out sharp fluctuations in the more volatile weekly figures and, as such, is seen as a more accurate indicator of the health of the labour market.

The Department of Labor added 2.16m people were already collecting weekly unemployment benefits, known as continuing claims, in the week to 24 September, a 17,000 increase from the prior week.

"The Labor Department reported no special factors in this week’s report, and the modest uptick in claims is in line with the historical volatility of both series," said analysts at Barclays.

"With initial and continuing jobless claims near decade lows, separations data continue to point to solid labor market conditions."