Global Markets: U.S. unemployment claims higher than expected

By MarketsFarm

WINNIPEG, June 25 (MarketsFarm) – The following is a glance at the news moving markets in Canada and globally.

Unemployment claims in the United States were higher than expected for the second week in a row, indicating that recovery from the COVID-19 pandemic may be slower than anticipated. Economists expected jobless claims to be around 1.32 million, but they were closer to 1.48 million. However, that is lower than the week prior, when claims totalled 1.54 million.

A recent report from Export Development Canada said trade confidence among Canadian exporters is at an all time low due to the COVID-19 pandemic. The trade confidence index fell to 56.0, compared to 69.3 at the end of 2019. The survey showed nearly 75 per cent of respondents said the pandemic negatively impacted export sales. However, 14 per cent of businesses reported stronger sales during the pandemic.

Nationwide reopening in the U.S. spurred an increase in sales for durable goods in May. Economists expected a 10.5 per cent increase, but bookings for durable goods were nearly 16 per cent higher in May compared to previous months. However, the COVID-19 pandemic is far from over, as the U.S. recorded over 38,000 positive cases on Wednesday, which is a daily record. “We all want to get back to normal, but a full recovery is unlikely to occur until people are confident that it is safe to re-engage in a broad range of activities,” said Federal Reserve Chair Jerome Powell in a press conference last week.

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