US open: Markets rise after latest Fed news as jobless claims fall

Markets rose on Thursday as US initial jobless claims met with consensus expectations.

Early in the day the Dow Jones Industrial Average increased 1.23% to 17,584.52, the S&P 500 rose by 1.16% and Nasdaq ascended 1.20%. The S&P 500 snapped a five-day losing streak.

US initial jobless claims fell to 294,000 from 298,000 in the week ending 3 January, in line with consensus expectations of 290,000, leaving the four-week moving average unchanged at 291,000.

Barclays Research said: “Claims data, particularly on the continuing claims side, continue to be volatile as seasonal factors work their way through the data.”

Following the most recent positive Fed news, US markets received a mild boost. Financial analyst for Spreadex Connor Campbell said: “Last night the US Fed spoke of its confidence in a US economic recovery, and its faith in the country’s ability to ignore the international unrest that is looming over many of the other markets.

“Unsurprisingly, this bullish sentiment was felt by the US markets, as the Dow slowly began to lurch into gear and try and climb back up to 18,000.”

Meanwhile, crude futures fell with WTI down 0.3% at $48.49 a barrel, while Brent declined 0.6% to $50.85 a barrel.

Campbell noted: “Oil is currently a serving a lesson in relativity; a stable price of $51 per barrel is now seen as a positive from markets that were decrying a potential fall to $70 per barrel mere months ago.

“However, it looks like the markets will have to keep shifting what a relatively positively price for oil looks like as the commodity remains constantly on the precipice of yet another decline.”

Over on COMEX, gold futures were falling 0.06% to $1,211.40 while the dollar was prevailing against the pound, the yen and the euro.

The yield on a benchmark US 10-year Treasury climbed four basis points to 2%.