Stock Market Review and World Business Briefs
U.S. stocks snapped a three?day losing streak as reports on jobless claims and manufacturing added to evidence the recession may be near a bottom. The number of US workers filing new claims for jobless benefits rose last week, but the number of people staying on the benefit rolls after collecting an initial week of aid fell for the first time since January, a government report showed on Thursday.
The Labor Department said the total unemployment insurance rolls fell by 148,000 to 6.69 million in the week ending June 6, the largest drop in more than seven years. The decline is a sign that layoffs are easing. The Obama administration’s overhaul of financial?industry rules faces a lobbying assault on Capitol Hill, as lawmakers question the Federal.
Reserve’s role and bankers say the plan may hinder economic growth. President Barack Obama announced his proposals on Wednesday in the White House, and banks, hedge funds and commodities traders quickly pointed to provisions they didn’t like. Obama would give the Federal Reserve the power to regulate all firms that pose a threat to financial stability.
Brazilian stocks fell for a fourth day, the longest losing streak in four months, on concern prices aren’t sustained by economic growth and the central bank said that future interest?rate cuts will be “parsimonious.”
Asian stocks rose, paring the MSCI Asia Pacific Index’s biggest weekly decline since March, as better?than?estimated U.S. economic reports boosted the dollar.
The British Bankers’ Association may expand the pool of banks that set the London interbank offered rate in a bid to bolster confidence in the benchmark for more than $360 trillion of financial products around the world. Banks without a physical presence in London may apply to join the panel of members that contribute to the Liborsetting process, the BBA said.
The yen weakened for a third day against the euro as signs the world may be emerging from the steepest global slump in 50 years spurred demand for higher? yielding assets. The Australian and New Zealand dollars rose the most against the yen and the greenback as Asian stocks headed for their biggest advance in a week. The yen declined against all 16 major currencies after an index of U.S. leading economic indicators rose in May for a second month and a regional factoryuge increased more than forecast in June.
