US stocks snapped higher on Thursday as unemployment data eased recession concerns, while European and Asian equities struggled.

First-time claims for US unemployment benefits dropped last week by more than expected to 233,000, according to Labor Department data. 

"The key takeaway from the report is that the downturn in initial jobless claims — a leading indicator — is helping to quell recession concerns," said Briefing.com analyst Patrick O'Hare.

Data last Friday showed fewer than expected US jobs created in July, triggering concern that the Federal Reserve had waited too long to begin cutting interest rates and that the US economy could end up sliding into recession.

"Any data which suggests that the Fed isn't behind the curve in regards to its likely rate-cut in September is welcomed news for investors," said eToro US investment analyst Bret Kenwell.

US recession fears, combined with a spike in the value of the yen following a Japanese rate hike last week, sent global equity markets plunging Monday. 

Since then, there have been rebounds and renewed losses as traders seek to weigh up the risks of recession in the United States, the world's biggest economy.

The yen has since fallen back after the Bank of Japan signaled a dovish approach on interest rates.

"Things have calmed down significantly," said Art Hogan of B. Riley Wealth, who said the volatility stems from uncertainty on whether signs of a slowing US economy show "normalization" or portend a recession.

In Europe, London and Paris closed lower Thursday but Frankfurt pushed higher, after Tokyo closed down 0.7 percent.

The Japanese index had tumbled more than 12 percent Monday before rocketing over 10 percent Tuesday, largely because of wild swings in the yen against the dollar. 

Investors are also closely tracking corporate earnings.

Warner Bros. Discovery's share price plunged around nine percent Thursday after it reported a quarterly loss of almost $10 billion.

Almost all of the loss was down to a $9.1 billion write-down in the value of the US media giant's cable network, it announced in a statement, underscoring the challenges facing the legacy television industry. 

But Eli Lilly surged 9.5 percent, boosted by strong sales of drugs that treat diabetes, weight loss and metastatic breast cancers.

Source: AFP