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Monday, July 11, 2011

Low numbers of jobs U.S. hit stocks (AP)

LONDON - much lower than expected figures of employment tumbling Friday sent U.S. investors worried that stocks the US economic recovery was grinding to an end.

Statistics of the Department work came under the most conservative and fairly dismal numbers may lower estimates. The US economy added just 18,000 jobs in June, way below the expectations of the market at least 125. The weakness is particularly surprising buoyancy of the private firm ADP payroll report earlier this week.

There was even more disappointed by the news that the may increase has fallen by half more than 25 000 and the unemployment rate rose to 9.2% to 9.1%.

"With U.S. employers adding fewer new jobs in June that the median forecast had planned it is hardly surprising that American and European stock markets register anything other than sharp falls," said Howard Wheeldon, strategist than BGC partners.

The health of the US labor market is crucial for the world economy and announced Friday reinforced recent fears that performs the recovery of the steam.

These fears hit stocks and the dollar hard.

In Europe, CAC-40 the 1.1 percent to 3,935 dragged France and the Germany DAX fell 0.5% to 7,432. The index FTSE of the leading British shares lost 0.7 per cent to 6,013.

Wall Street opened down strongly on the news after strong gains the previous day. The Dow Jones industrial average lost 0.9% at 12,612, while the broader S & P 500 index fell 1 percent to 1,340.

Following the news, the euro recovered some of its earlier against dollars losses, as investors fretted about the State of the economy their venerate yet and reassessed the expectations of how long the US Federal Reserve will keep interest rates low record levels.

"The continuation of the economic soft patch will cause the Federal Reserve to postpone its exit strategy," said Sung won Sohn of California State University.

The currency used by the 17-nation euro zone has been reduced from 0.3% to $1,4322 in early afternoon.

Stocks earlier, Asian rode expectations that the United States would reveal figures which show that its economy was growing. Nikkei 225 Japan gained 0.7% to close at 10,138, while the Hang Seng in Hong Kong index added 0.9% to 22,726.

Chinese ?? actions were more cautious. The Shanghai Composite Index gained 0.1% to 2,797.77, while the Shenzhen Composite index was virtually flat at 1,201.50.

Oil for August delivery reference deleted almost all of its gains of the previous day, falling $1.52 to $97.15 US per barrel in electronic trade on the New York Mercantile Exchange.

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