Initial weekly US jobless claims fall very sharply

Initial jobless claims in the US recorded their largest drop since April 2015 last week.

According to the Department of Labor, initial jobless claims for the week ending on 8 December dropped by 27,000 to reach 206,000.

Economists had anticipated a much smaller decline of 6,000 from the original estimate of 231,000 for the prior week to 225,000.

The four-week moving average meanwhile shrank by 3,750 to 224,750.

In parallel, secondary unemployment claims, or those which are not being filed for the first time, and referencing week ending on 1 December, edged up by 25,000 to 1.661m.