US labour market tightening

WASHINGTON: The number of Americans filing for unemployment benefits unexpectedly fell last week, suggesting that a strong economy was helping the labor market weather ongoing trade tensions between the United States and a host of other countries.

Other data on Thursday showed a solid increase in underlying producer prices in July.

Labor market strength and rising inflation likely keep the Federal Reserve on track to raise interest rates in September for the third time this year.

"Trade war tensions in the clouds out there on the horizon may still move closer to shore later this year," said Chris Rupkey, chief economist at MUFG in New York.