U.S. Initial jobless claims rose by 13,000 to 399,000 in the week that ended Saturday, the Labor Department reported today. The increase was partly because many claims delayed the prior week due to Hurricane Isabel were filed.

The estimate for the previous week was raised by 5,000 to 386,000.

Nonetheless, last week marked the second consecutive week that the number of claims has come in below 400,000, which economists generally interpret as a sign of a stabilizing labor market.

On Wall Street, stocks slipped at the open. The technology-laced Nasdaq composite index dipped 3 points, to 1,828. The blue-chip Dow Jones industrial average eased 16 points to 9,453. The broad S&P 500 shed 1 points to 1,016.

Shortly after the open, the S&P/TSX composite index was up 6.73 points to 7,516.40.

European markets rose in morning trading Thursday, led by London, as optimism continued on Wednesday’s surprise improvement in the United Kingdom’s September purchasing managers index.

The PMI rose to 52.2, the highest since May 2002, boosted by strong export orders. This is its highest rating since May 2002.

On Thursday, the European Central Bank held interest rates steady at 2% and signaled no rate change for months ahead.

London’s FTSE 100 stock index is up or 0.6%.
In Frankfurt, the DAX is up 0.5%, while in Paris, the CAC40 has risen 1.8%.

Overnight, Asian stocks made exuberant gains, with Japan’s benchmark index up 2.2%, led by banks, brokerages and steelmakers after Wednesday’s gains on Wall Street.

The Nikkei stock average rose 232.29 points to 10,593.53, augmenting a 142-point gain Wednesday.

Hong Kong’s Hang Seng index soared 316.25 points, or 2.8%, to 11,546.12 — its highest close since May 28, 2002. Big Hong Kong developers posted strong gains on hopes of a recovery in the property market, which has been moribund since the 1997-98 Asian financial crisis.

On Wednesday, the S&P/TSX composite index gained 88.54 points to 7,509.67, — led by information technology, financial and energy stocks

In New York, stocks rebounded as investors reacted to a report showing the manufacturing sector continued to expand.

The tech-heavy Nasdaq composite index rose 45.31 points, or 2.54%, at 1,832.25.

The blue-chip Dow Jones industrial average jumped 194.14 points, or 2.09%, to 9,469.20. The broad S&P 500 Index gained 22.24 points, or 2.23%, to 1,018.21.