UNEMPLOYMENT

The number of Americans lining up for new jobless benefits dropped to the lowest level in nearly four years last week, according to a government report that showed ongoing healing in the labor market.

Stocks traded flat to slightly higher Thursday after two straight days of declines as jobless claims data showing improvement in the U.S. labor market helped offset revived concerns about the euro zone's fiscal stability.

The number of Americans lining up for new jobless benefits dropped to the lowest level in nearly four years last week, according to a government report that showed ongoing healing in the labor market.

The suicide of a 77-year-old pensioner outside of Greece's parliament has become a symbol of the nation's pain after an economic crisis brought on a host of austerity cuts and caused protests in Athens.

A pharmacist ought to be able to live comfortably on his pension. So for him to reach the point of suicide out of economic hardship means a lot. It shows how the social fabric is unraveling, an activist in Athens said.

Spanish borrowing costs Thursday hit their highest levels since before the European Central Bank launched two massive liquidity injections to keep the euro zone's financial system from freezing up.

A pair of unexpectedly downbeat economic reports from Germany and the UK on Thursday added to fears of a recession in the euro zone and fueled doubts that manufacturing could power the region's economic recovery.

The Bank of England held back from giving Britain's fragile recovery an extra boost on Thursday, as the economy appears to have avoided falling into recession despite a shock drop in manufacturing output in the first months of 2012.

Claims for jobless benefits fell to 357,000 last week, building up toward a solid March nonfarm payroll report that is scheduled to come out on Friday. Some economists though still fear that the improvement in the U.S. economy seen so far this year could be just another false start.

Futures on major U.S. indices point to a lower opening Thursday ahead of key weekly jobless claims from the government.

Last year we woke up to headlines involving the home of the Acropolis and one of the worst debt situations in recent history – Greece.

China's rise has unsettled many Westerners, especially Americans who fear Chinese influence could overwhelm that of the U.S. As the U.S. struggles through economic recovery, will China seize its chance to lead the world?

By resigning, the president becomes eligible for an emergency election expected to take place May 6, and it opens the door to a challenge from opposition leader Tomislav Nikolic, who favors stronger ties with Russia.

Fresh figures on business activity and retail sales in the 17-member currency area reinforce earlier signs of recession, even as the European Central Bank left its main interest rate unchanged at an all-time low of 1 percent.

UK economy seems to be on the track to buck the trend in many other European countries where economic recovery continues to struggle.

U.S. employers created 209,000 jobs in March, slightly more than analysts expected but less than the previous month's figure, a report from Automatic Data Processing Inc., a private payrolls processor showed, on Wednesday.

She didn't mention the U.S. central bank's two previous rounds of bond-buying known as quantitative easing, but Lagarde stressed that past action by the Fed and European regulators helped keep growth strong and steady.

U.S. employers probably hired more than 200,000 workers for the fourth straight month in March, economists said in anticipation of a report this week, pointing to another strong performance in the labor market.

Ongoing fiscal troubles in the 17-state currency area have cut share prices of numerous European companies, making them attractive to suitors from abroad.

Unions, students and others have protested the proposed cuts by staging huge demonstrations in Barcelona, Madrid and other cities across the beleaguered country.

Stocks extended losses on Tuesday after minutes from the most recent meeting of the Federal Reserve's policy-setting committee showed the Fed appeared less keen to launch additional stimulus measures.