US initial jobless claims were lower from the previous week but came above expectations

The number of Americans filling for unemployment benefits rose above expectations last week but was slightly below previous week’s numbers.

US weekly jobless claims totaled at 751,000 for the week ended Oct 31, slightly below upward revised previous week’s figure at 758,000 but overshot forecast for 732,000.

Continuing claims, which measure the number of unemployed who qualify for jobless benefits, at 7.285 million was below previous week’s result of 7.823 million, but above consensus for 7.20 million.

Stubbornly high unemployment on of devastating impact from Covid-19 pandemic, points to prolonged crisis, as mounting new infection and signals of fresh restrictive measures could stall recovery in US labor sector.

Increased uncertainty over US presidential election, would also undermine business investments and further delay much-needed second package of fiscal stimulus from the government, as negative expectations rise on lack of fiscal stimulus and political uncertainty that would push the economy on a sharply slower growth path in the fourth quarter.

Markets turn focus towards closely watched government’s employment report on Friday, with expectations for non-farm payrolls to rise by 600,000 in October, after rising 661,000 in September.