Jobless claims came in a bit higher than expected at 478,000 versus expectations of a 470,000 outcome. Given the layoff announcements that have crossed the tape in recent days, they will rise much much more in the months ahead.
Elsewhere, emerging markets continue to swoon. Brazil is in the spotlight as the “b” in BRIC (Brazil, Russia, India, China). With its abundant natural resources and cheap pool of labor, it was in many ways the most attractive of the newly developing markets. Now it is suffering horribly as the bubble collapses upon itself.
The Brazilian central bank, which built massive reserves during the bubble, is deploying them to steady the real. They just announced Dollar auctions of up to $50 bln.
That should help stabilize things, perhaps even he major currencies, as well.
