US stocks indexes rise to records on jobless data, Fed

US stocks rose as data showed fewer Americans filed for jobless claims and investors speculated interest rates will remain low. The S&P 500 Index advanced 0.5% to 2,011.36. The Dow Jones Industrial Average added 109.14 points (0.6%) to an all-time high of 17,265.99.

Jobless claims in US decline to two-month low of 280,000

The number of Americans filing applications for unemployment benefits plunged last week to a two-month low, a sign the labor market continues to strengthen. Jobless claims decreased by 36,000 to 280,000 in the period ended September 13, the Labor Department said. Jobless claims last week were the lowest since 279,000 in mid-July and the second-lowest since 2000. The median forecast of economists surveyed by Bloomberg called for a decline to 305,000.

Slump in US housing starts led by multifamily

Housing starts slumped in August from the highest level in almost seven years, reflecting a setback in multifamily projectsthat are at the forefront of the rebound in US real estate. Beginning home construction fell 14.4% in August, the most since April 2013, to a 956,000 annualized rate following July’s revised 1.12mn pace, the Commerce Department said. The median estimate in a Bloomberg survey of economists called for a 1.04mn pace of housing starts.

Draghi loan plan missing estimates hampers ECB stimulus

The European Central Bank’s (ECB) president Mario Draghi is facing renewed pressure to implement quantitative easing after banks borrowed less than estimated in the ECB first targeted-loan offer. The ECB lent €82.6bn (US$106.5bn) to euro-area banks at a fixed interest rate of 0.15% in its targeted longer-term refinancing operations (TLTRO). That was below predictions in a Bloomberg survey, which gave a range of €100bn to €300bn.

UK retail sales rise as demand for vacuum cleaners surges

UK retail sales rose the most in four months in August, helped in part by a surge in demand for vacuum cleaners before new restrictions on powerful electrical appliances came into effect. The volume of sales including auto fuel increased 0.4% mom in August from a flat growth in July, matching the median estimate of economists in a Bloomberg News survey, according to data from the Office for National Statistics.

Japan August’s exports fall less than forecast

Japan’s exports declined less than forecastwhile a drop in imports underscored the challenge to Prime Minister Shinzo Abe in stoking domestic demand. Overseas shipments fell 1.3% in August from a year earlier, the finance ministry said, compared with the median estimate for a 2.6% reduction in a Bloomberg News survey of economists. Imports were 1.5% lower, leaving a deficit of ¥948.5bn (US$8.7bn).

New Zealand economy grows fastest in 10 years as election looms

New Zealand’s economy grew at the fastest pace in 10 years in the 2Q14, outperforming most major developed markets as the country prepares to hold an election this weekend. GDP increased 3.9%yoy in 2Q14 from 3.8% yoy in the 1Q14, the strongest growth since the 2Q04, Statistics New Zealand said. That beat the 3.8% median forecast in a Bloomberg News survey of economists. Annual growth was buoyed by improvements in construction, farm output and consumption.

Crude fluctuates on stockpile gain

WTI was little changed as rising US crude stockpiles offset signs of diminished OPEC supply. Brent for November settlement declined US$1.27 to US$97.70 a barrel on the ICE Futures Europe exchange.

Source: Bloomberg