Initial jobless claims in the U.S. decreased by 4,000 to 386,000 last week — the lowest level in a month. This report from the Labor Department is good news for investors who have been worried about an unstable labour market in a “jobless recovery.”

The drop beat economist expectations of an increase in claims by 6,000. For three straight weeks, initial claims have stayed under the crucial comfort level of 400,000.

Wall Street futures are down despite the good news from the Labor Department. Equities markets around the world have been having a tough day.

Profit-takers were busy in Asia during Thursday trading. In Japan, the Nikkei Stock Average of 225 issues fell 554.46 points, or 5.09%, finishing at 10,335.16. This was the largest one-day drop since Sept. 12, 2001, when the index fell after the terrorist attacks in the United States. Japan’s major banks led the downturn.

In Hong Kong shares fell 4.1% — also the biggest decline since Sept. 12, 2001. The Hang Seng Index nose-dived 501.45 points to finish at 11,737.18. Both indexes have been setting record highs in recent weeks.

In Europe, London’s FTSE index is down 1.16% at midday. Frankfurt’s DAX has slid 0.95% and Paris’s CAC 40 has fallen 1.35%.

Here in Canada, resources giant Noranda Inc. is reporting a US$20 million profit in the third quarter, due to high metal prices. That compares with a loss of US$43 million a year ago.

Quarterly earnings reports are due Thursday from Nortel Networks, Dofasco, Aliant, Celestica, Hummingbird, Imperial Oil, MacDonald, Dettwiler & Associates, Quebecor World, TransAlta and Astral Media,

In Ottawa, Bank of Canada governor David Dodge is scheduled to speak to the Senate banking committee about the Canadian financial system.

Statistics Canada is reporting that the number of Canadians who contributed to a registered retirement savings plan, as well as the amount of their contributions, have both dropped sharply for the second straight year.

Yesterday, Toronto’s S&P/TSX composite fell 56.76 points to 7,711.24, pulled down by information technology and energy stocks. The Dow Jones industrial average tumbled 149.4 points to 9,598.24. The Nasdaq composite index lost 42.83 points to 1,898.07 and the S&P 500 index fell 15.67 at 1,030.36.