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US and European stock markets fall on weak US jobs data | |
(40 minutes later) | |
Stock markets have fallen sharply as weak US jobs data added to fears of a new global economic downturn. | Stock markets have fallen sharply as weak US jobs data added to fears of a new global economic downturn. |
Wall Street was hit hard, with the Dow Jones, S&P 500, and Nasdaq indexes down more than 2%. | Wall Street was hit hard, with the Dow Jones, S&P 500, and Nasdaq indexes down more than 2%. |
Earlier, European stocks closed lower as the Department of Labor said the US economy added no net jobs in August. | Earlier, European stocks closed lower as the Department of Labor said the US economy added no net jobs in August. |
The jobs data follows manufacturing sector surveys released on Thursday which showed activity at factories worldwide dropped last month. | The jobs data follows manufacturing sector surveys released on Thursday which showed activity at factories worldwide dropped last month. |
London's FTSE 100 ended 2.3% down, and Frankfurt's Dax was 3.36% lower. In France and Spain, markets were more than 3% down, and Milan's exchange sank almost 4%. | London's FTSE 100 ended 2.3% down, and Frankfurt's Dax was 3.36% lower. In France and Spain, markets were more than 3% down, and Milan's exchange sank almost 4%. |
The Dow dropped 2.2%, and the S&P and Nasdaq were 2.5% down. | The Dow dropped 2.2%, and the S&P and Nasdaq were 2.5% down. |
The London market was not helped by other data on Friday that pointed to a further slowdown in the construction sector in the UK. | The London market was not helped by other data on Friday that pointed to a further slowdown in the construction sector in the UK. |
The slump began in late trading in the US on Thursday, where the Dow Jones ended the day 1% lower, before continuing in Asia on Friday morning, where Tokyo's Nikkei fell 1.2%, and Hong Kong's Hang Seng 1.8%. | The slump began in late trading in the US on Thursday, where the Dow Jones ended the day 1% lower, before continuing in Asia on Friday morning, where Tokyo's Nikkei fell 1.2%, and Hong Kong's Hang Seng 1.8%. |
Banks across Europe were among the worst performers. | Banks across Europe were among the worst performers. |
In the UK, Barclays fell 8.4% and Lloyds 7.1%. In Germany, Deutsche Bank and Commerzbank were down 6% and 5.5% respectively. In France, Credit Agricole fell 7.4% and Societe Generale was off 6.6%. | In the UK, Barclays fell 8.4% and Lloyds 7.1%. In Germany, Deutsche Bank and Commerzbank were down 6% and 5.5% respectively. In France, Credit Agricole fell 7.4% and Societe Generale was off 6.6%. |
In the US, where it has emerged that the banks will be sued by a US government home loans agency, shares in Bank of America were hammered, dropping 8% at the open, while Citibank fell 5.2%. | In the US, where it has emerged that the banks will be sued by a US government home loans agency, shares in Bank of America were hammered, dropping 8% at the open, while Citibank fell 5.2%. |
Seeking safety | Seeking safety |
The latest falls follow a highly volatile August, with markets globally rocked by a slew of weak economic data from the US and Europe. | The latest falls follow a highly volatile August, with markets globally rocked by a slew of weak economic data from the US and Europe. |
There were also fears over the impact of government austerity programmes, and concern at the implications of the downgrade of some governments' credit ratings, including that of the US. | There were also fears over the impact of government austerity programmes, and concern at the implications of the downgrade of some governments' credit ratings, including that of the US. |
Haven investments rallied as investors sought safety from the downturn. | Haven investments rallied as investors sought safety from the downturn. |
Gold rose 3% for the day to just below $1,880 a troy ounce, close to the all-time high of $1,913.50 set last month. | Gold rose 3% for the day to just below $1,880 a troy ounce, close to the all-time high of $1,913.50 set last month. |
The euro fell 3% against the Swiss franc, briefly touching 1.10 francs after the US jobs data release. | The euro fell 3% against the Swiss franc, briefly touching 1.10 francs after the US jobs data release. |
The Swiss authorities have repeatedly intervened to weaken their currency after the euro dropped below the 1.05 francs level last month. | The Swiss authorities have repeatedly intervened to weaken their currency after the euro dropped below the 1.05 francs level last month. |
US government debt also rallied, with the yield - the implied cost of borrowing - of the 10-year Treasury bond falling instantly from 2.13% to 2.03%, in anticipation of a possible further round of debt purchases by the Federal Reserve. | US government debt also rallied, with the yield - the implied cost of borrowing - of the 10-year Treasury bond falling instantly from 2.13% to 2.03%, in anticipation of a possible further round of debt purchases by the Federal Reserve. |
The 10-year yield briefly dropped below 2% early in August, hitting its lowest level since World War II. | The 10-year yield briefly dropped below 2% early in August, hitting its lowest level since World War II. |
Have you been affected by the current economic crisis? Would you be willing to talk to the BBC? Send your comments and experiences using the form below. | Have you been affected by the current economic crisis? Would you be willing to talk to the BBC? Send your comments and experiences using the form below. |