US stocks lose ground despite strong jobless claims
US stocks fell on Thursday despite strong jobless claims data strengthening the outlook for the American economy.
The blue chip S&P 500 dropped 0.65 per cent today, while the tech-heavy Nasdaq fell 1.14 per cent on falls among growth stocks.
The Dow Jones slipped 0.17 per cent.
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The losses came the US Labour Department said initial claims for state unemployment benefits fell 26,000 to 360,000 for the week ended July 10, a 16-month low.
Yields on 10-year Treasuries edged back to 1.30.
FTSE 100 falls sharply despite jobs market recovery
London’s FTSE 100 posted its worst day in a week today despite data released in the morning showing the UK labour market recovery is gathering speed.
The capital’s premier index slid 1.12 per cent to 7,012.
Data from the ONS showing a resurgence in the number of payroll employees was not enough to dampen investors’ concerns about the rapid spread of the Delta variant of coronavirus.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: “Staff shortages and fewer redundancies combined with rising manufacturing and services prices and the expectation of stronger growth are all feeding through to his view that there is less slack in the economy than previously thought.”
Read more: UK unemployment rate falls as lockdown easing drives up hiring
The domestically focused mid-cap FTSE 250 dipped 1.09 per cent, while AIM shares slid 1.73 per cent.
The pound lost ground on the greenback, down 0.37 per cent to buy $1.38.
Winners and losers
Cybersecurity provider Avast led the way on Thursday, shooting up 18.12 per cent after news that it was in takeover talks with anti-virus software firm Norton broke in the morning.
Credit score checker Experian came second, rising 2.45 per cent. Insurer Prudential came third, up 1.64 per cent.
Takeaway delivery company Just Eat was the worst performer, plummeting 9.11 per cent despite posting a 700 per cent rise in orders in the first half of the year.
Retailer Next was the second worst performer of the day, losing 4.98 per cent. Pharma giant Astrazeneca was third, down 3.73 per cent.
Around the world
Asian shares posted a mixed day as fears about the sharp rise in Covid cases continues to dampen investor sentiment.
Japan’s Nikkei lost 1.15 per cent, but Hong Kong’s Hang Seng added 0.75 per cent.
Europe’s Stoxx 600 fell 0.97 per cent.
Read more: Shares in Avast jump as cyber firm confirms NortonLifeLock merger talks