Initial jobless claims increased last week, the U.S. Labor Department reported Thursday.

It was the fourth consecutive week in which initial claims have been below 400,000. Claims increased by 2,000 to 398,000.

On the downside though, the economy still has a way to go before employers will be able to meet rising demand for goods and services with fewer workers. Non-farm businesses have cut 486,000 jobs since January. Most economists say employers aren’t likely to begin hiring in large numbers until next year.

In a separate release, the Labor Department said that the producer-price index, which measures prices before products reach store shelves, climbed 0.1%, as expected, in July. The core index, which excludes food and energy items, rose 0.2%, reversing a 0.1% decline in the prior month.

The U.S., the Commerce Department said Thursday that the U.S. the trade gap narrowed to $39.55 billion in June from $41.48 billion in May. That beat expectations. Economists had expected the deficit to come in around $41.80 billion.

The basket of economic news south of the border has left Wall Street futures flat Thursday morning.

Meanwhile, Canada’s merchandise trade balance fell for the third consecutive month to $3.6 billion, Statistics Canada reported Thursday. That is the lowest level since October 1999, as the 3.2% decline in exports outpaced the 2.2% drop in imports.

Canadian exporters sent $31.6 billion of goods abroad in June, the lowest level since September 1999. The weaknesses in exports were in aircraft, automotive and agricultural products. Moreover, 34 countries closed their borders to Canadian beef exports for the entire month.

In Europe, at midday, London’s FTSE 100 is up 0.8%. Frankfurt’s DAX has gained 0.62%. Paris’s CAC 40 has advanced 0.48%.

Tokyo shares rose for a fifth-straight session overnight due to strong foreign buying and news that Japan’s economic growth for the second quarter had surpassed expectations. The Nikkei jumped 160.72 points, or 1.65%, to 9,913.47. It was the first time the Nikkei closed above 9,900 points since July 10.

Hong Kong shares reached a new high for the year, led by banks and property stocks. The Hang Seng Index added 72.55 points, or 0.7%, to 10,374.02 – the highest finish in 2003.

Toronto stocks closed with modest gains Wednesday. The S&P/TSX composite index rose 18.26 points to 7,372.28.

In New York, the blue-chip Dow Jones industrial average fell 38.30 points to 9,271.76. The broader S&P 500 index fell 6.32 points, to 984.03. The tech-heavy Nasdaq composite index slipped 0.42 of a point to 1,686.59.