Investing.com - U.S. stock markets opened lower on Thursday, after data showed that the number of people who filed for unemployment assistance in the U.S. rose less-than-expected last week, while a U.S. government shutdown entered its third day.
During early U.S. trade, the Dow Jones Industrial Average fell 0.4%, the S&P 500 index declined 0.4%, while the Nasdaq Composite index shed 0.3%.
The U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits in the week ending September 28 increased by 1,000 to a seasonally adjusted 308,000.
Jobless claims for the preceding week were revised up to a gain of 307,000 from a previously reported increase of 305,000. Analysts had expected U.S. jobless claims to rise by 6,000 to 313,000 last week.
The data came as investors continued to weigh the implications of a protracted U.S. government shutdown.
President Barack Obama met with Republican and Democratic leaders in Congress on Wednesday, although a solution still seemed unlikely.
Markets were also considering how the political deadlock in Washington will impact negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
Moody's Investors Service warned that a failure to raise the debt limit would result in a worse outcome for financial markets than a government shutdown.
In earnings news, Constellation Brands saw shares climb 3% after reporting better-than-expected second-quarter earnings, though net sales fell short.
On the downside, Tesla Motors fell 2.4% after saying a fire which started in a Model S began in the vehicle's battery pack following an accident.
Across the Atlantic, European stock markets were mixed as investors digested raft of economic data out of the euro zone, while continuing to monitor political wrangling in Washington.
The EURO STOXX 50 fell 0.1%, France’s CAC 40 shed 0.3%, Germany's DAX tacked on 0.1%, while Britain's FTSE 100 inched up 0.5%.
Official data released earlier showed that retail sales in the euro zone rose 0.7% in August, beating expectations for a 0.2% gain, after an upwardly revised 0.5% increase the previous month.
Separately, Markit research group said its final reading for the euro zone services purchasing managers' index rose to 52.2 in September, from a reading of 52.1 in August. Analysts had expected the index to remain unchanged last month.
Germany's services PMI declined to 53.7 last month, from a reading of 54.4 in August, compared to expectations for the index to remain unchanged.
Sentiment remained supported after Italian Prime Minister Enrico Letta survived a vote of confidence in parliament on Wednesday, after Silvio Berlusconi dropped his opposition to the coalition, in a surprise U-turn after announcing Saturday that he was pulling his ministers out of the government.
Meanwhile, in the U.K., data showed that activity in the U.K. service sector slowed slightly in September, but remained close to August’s almost seven-year high.
The Markit U.K. services sector purchasing managers' index ticked down to 60.3 in September from 60.5 in August. Economists had forecast a reading of 60.0.
During the Asian trading session, Hong Kong's Hang Seng Index rose 0.9%, Australia’s ASX/200 Index ended 0.37% higher, while Japan’s Nikkei 225 Index closed down 0.09%.
In China, a government report released earlier showed that the nation’s non-manufacturing purchasing managers' index climbed to a six-month high of 55.4 in September from 53.9 in August.
The upbeat data eased concerns over China’s economic recovery, lifting most markets across the region.
During early U.S. trade, the Dow Jones Industrial Average fell 0.4%, the S&P 500 index declined 0.4%, while the Nasdaq Composite index shed 0.3%.
The U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits in the week ending September 28 increased by 1,000 to a seasonally adjusted 308,000.
Jobless claims for the preceding week were revised up to a gain of 307,000 from a previously reported increase of 305,000. Analysts had expected U.S. jobless claims to rise by 6,000 to 313,000 last week.
The data came as investors continued to weigh the implications of a protracted U.S. government shutdown.
President Barack Obama met with Republican and Democratic leaders in Congress on Wednesday, although a solution still seemed unlikely.
Markets were also considering how the political deadlock in Washington will impact negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
Moody's Investors Service warned that a failure to raise the debt limit would result in a worse outcome for financial markets than a government shutdown.
In earnings news, Constellation Brands saw shares climb 3% after reporting better-than-expected second-quarter earnings, though net sales fell short.
On the downside, Tesla Motors fell 2.4% after saying a fire which started in a Model S began in the vehicle's battery pack following an accident.
Across the Atlantic, European stock markets were mixed as investors digested raft of economic data out of the euro zone, while continuing to monitor political wrangling in Washington.
The EURO STOXX 50 fell 0.1%, France’s CAC 40 shed 0.3%, Germany's DAX tacked on 0.1%, while Britain's FTSE 100 inched up 0.5%.
Official data released earlier showed that retail sales in the euro zone rose 0.7% in August, beating expectations for a 0.2% gain, after an upwardly revised 0.5% increase the previous month.
Separately, Markit research group said its final reading for the euro zone services purchasing managers' index rose to 52.2 in September, from a reading of 52.1 in August. Analysts had expected the index to remain unchanged last month.
Germany's services PMI declined to 53.7 last month, from a reading of 54.4 in August, compared to expectations for the index to remain unchanged.
Sentiment remained supported after Italian Prime Minister Enrico Letta survived a vote of confidence in parliament on Wednesday, after Silvio Berlusconi dropped his opposition to the coalition, in a surprise U-turn after announcing Saturday that he was pulling his ministers out of the government.
Meanwhile, in the U.K., data showed that activity in the U.K. service sector slowed slightly in September, but remained close to August’s almost seven-year high.
The Markit U.K. services sector purchasing managers' index ticked down to 60.3 in September from 60.5 in August. Economists had forecast a reading of 60.0.
During the Asian trading session, Hong Kong's Hang Seng Index rose 0.9%, Australia’s ASX/200 Index ended 0.37% higher, while Japan’s Nikkei 225 Index closed down 0.09%.
In China, a government report released earlier showed that the nation’s non-manufacturing purchasing managers' index climbed to a six-month high of 55.4 in September from 53.9 in August.
The upbeat data eased concerns over China’s economic recovery, lifting most markets across the region.