Markets fall as unemployment rises

Stock markets have retreated sharply on a bigger-than-expected rise in US job losses.

Just under 470,000 more people were out of work in the world’s biggest economy over June, around 100,000 in excess of analysts’ expectations.

The news, coupled with a rise in eurozone unemployment to a ten-year high, sent the FTSE 100 down by 2.45 per cent yesterday.

Meanwhile, the S&P 500 in the US lost 2.91 per cent, while Asian markets also declined overnight on the news.

The European markets were still trading largely flat this morning, with investors apparently losing hope in the prospect of ’green shoots’ of economic recovery.

Philip Gillette, sales trader at IG Index, told Reuters: ’This proves that we may not be at the bottom yet.

’The world’s biggest economy, as we know them, is going to be dragged down.’

Joshua Raymond, market strategist at City Index, added: ’There is no doubt that yesterday’s jobs data from the US will have unnerved the market. As soon as the data came out investors ran for the hills and now is the time to reflect on the current macro situation.’ADNFCR-2318-ID-19249489-ADNFCR