Chenglong International US Initial Jobless Claims Rock Sentiment

Online, May 24, 2011 (Newswire.com) - "Chenglong International": New claims for unemployment benefits in the US unexpectedly jumped last week to reach their highest level in 8 months, a Labor Department report showed on Thursday.

Initial claims for state unemployment aid rose 43,000 to a seasonally adjusted 474,000, pushed up by dynamics including spring break layoffs to the introduction of an emergency benefits program.

Consensus among economists had forecast claims dropping to 410,000 despite the prior week's figure being revised up to 431,000 from the previously reported 429,000.

"Chenglong International", who have made no secret of their bearishness on the US recovery, suggest that another round of quantitative easing may not be far off.

"The federal government's hands are tied thanks to fervent efforts being made in Congress to reduce the deficit so the ball lies in the Federal Reserve's court and our feeling is that Ben Bernanke is unlikely to disappoint the markets," said a "Chenglong International" analyst.

Although the publishing of the data falls outside the survey period for the Labor Department's employment report for April, which will be released on Friday, "Chenglong International" is thought to be expecting a disappointing number.