The euro slid to a decade low against the yen and a 15-month low versus the dollar as Italian bonds fell after the nation raised less than its maximum target at a debt auction. U.S. equity futures rose while gold fell.
The euro decreased as much as 0.8 percent to 100.06 yen as of 8:35 a.m. in New York and retreated to as low as $1.2858. The yield on Italian 10-year bonds climbed four basis points to 7.04 percent. Standard & Poor’s 500 Index futures rose 0.2 percent and the Stoxx Europe 600 Index increased 0.1 percent. Gold declined to a five-month low.
Italy sold bonds due in 2022 to yield 6.98 percent, compared with 7.56 percent at the last sale on Nov. 29. The European Central Bank said overnight deposits from financial institutions declined from a record high yesterday. U.S. data showed fewer Americans filed applications for unemployment benefits over the past month than at any time in the past three years, a sign the U.S. labor market is on the mend.
“Yield levels around 7 percent are absolutely not sustainable,” said Michael Markovic, a senior fixed-income strategist at Credit Suisse Group AG in Zurich. “They could not sell the entire size they planned. It’s not positive news for the stressed sovereign-debt markets in the euro zone.”
The euro slid for a fifth day against the yen, falling to the weakest level since June 2001. The 17-nation currency was at the lowest since September 2010 against the dollar.
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Jobless Claims in U.S. Hit Three-Year Low in Past Month
Fewer Americans filed applications for unemployment benefits over the past month than at any time in the past three years, a sign the U.S. labor market is on the mend heading into the new year.
The four-week moving average for claims, a less volatile measure than the weekly figures, dropped to 375,000 last week, the lowest level since June 2008, Labor Department figures showed today in Washington. Applications (INJCJC) rose for the first time in a month in the week ended Dec. 24, climbing by a more-than- forecast 15,000 to 381,000.
The jump in claims last week may say more about their volatility during this time of year than about the state of the job market, according to economists like Ryan Sweet. Their recent decline has stoked speculation the world’s largest economy was on the cusp of showing bigger gains in employment.
“Though claims data can bounce around near holidays, they continue to trend lower,” Sweet, a senior economist at Moody’s Analytics Inc. in West Chester, Pennsylvania, said before the report. “Layoffs have slowed, but there is little improvement in hiring.”
