Markets Drop As US Releases New Job Numbers
European and UK shares have reacted against the latest US jobless figure, amid concerns of America's inability to boost growth.
The US, with a population exceeding 300 million, added a meagre 80,000 jobs in June.
The American unemployment rate remained unchanged from May, at 8.2%, or 12.7 million people.
After the US job figure was released, the FTSE 100 closed 0.53% down, the Ibex plunged 3.1%, the Dax fell 1.92% and the CAC 40 by 1.88%.
The weak job growth rate has prompted concerns about the US Federal Reserve's ongoing position on quantitative easing (QE).
QE has become increasingly popular during the ongoing economic crisis to help stimulate growth in countries beset with problems.
The Fed has used QE as an attempt to spark the market for both Treasury and mortgage-backed securities, and many investors want the kick-start to continue.
On Thursday, the Bank of England announced a new £50bn round of QE for Britain, taking its total since 2009 to £375bn.
Critics of QE have voiced concerns that the repeated liquidity injections are harming future pension annuities.
:: The IMF's Christine Lagarde has warned of a plan to cut growth forecast of 3.5% as the global economic state becomes "more worrisome".
what do you think?
Says it all really ........ good jobs news = bad shares news
We are the only country in the world which does QE. The USA did it once about 5 years ago but never again. This government wants to destroy the private pensions so they can increase their own pensions.
Not quite, we are possibly the only country to admit to it.