“The recent jobless claims data, while not typically a major market event, supports the view that recent pessimism may have been overblown,” said a report by UBS Global Wealth Management's chief investment officer.
The number of new unemployment benefits claims in the U.S. fell by 233,000 less than expected last week, according to official figures from the U.S. Labor Department.
Although global markets are seemingly recovering, analysts warn that trading is likely to remain volatile for the time being.
“Market volatility is creating trading opportunities for investors in the short term,” said Peter McGuire of trading platform XM.com.
“The election season is going to be a rough ride and we're all waiting for the (Federal Reserve) policy decision in September.”
The Federal Reserve held off on cutting interest rates last week, a move that is typically considered growth-boosting, in contrast to other central banks, including the Bank of England.
But this week's market turmoil has raised additional speculation about when and how much the Fed might cut borrowing costs.
“The Fed is now likely to cut rates by as much as 50 basis points in September, which would support market valuation gains,” said Liu Junbei, portfolio manager at Tribeca Investment Partners.
