TSX – 12,700.74
Dow – 11,493.57
S&P 500 – 1,204.42
Nasdaq – 2,546.04
Unemployment Concerns as New Figures are Released
- The new US employment figures showed no growth, staying at 9.1%, as no jobs were added to the American workforce.
- Analysts had expected the US to create 75,000 new jobs, but the report revealed that this estimation was too high.
- The news caused falls in the stock market and more panic as unemployment concerns continue.
- The Federal Reserve is now under pressure to add more stimulus to help the economy.
- Bernanke’s speech on Friday suggested a slow recovery, but the recent figures show no progress has been made.
- This has seen many demonstrate their anger towards the Federal Reserve. Though views are still mixed.
- These aren’t the only mixed views, as the FOMC meeting reveals a divided opinion on a need for QE3.
Do the recent figures increase unemployment concerns enough to introduce QE3?
Mixed Opinions in Canada
- Though the Canadian economy faltered in the second quarter, most believe that it will regain its momentum.
- The Canadian currency saw a four week high.
- The manufacturing sector also went against the international trend and posted positive numbers in their latest report.
- The economy is still in a fragile state though, and this was shown with the second quarter weakening with external factors.
- Germany has hit a crisis point as they announced a drop in public deficit.
- It’s suggested that Germany will eventually pay up. But the country will need to work out the best method.
- The Eurozone continues to be a problem with issues being pushed back, rather than being dealt with. Germany has chosen to do this once again and a recent quote from Geroge Soros pointed out that:
“Sometimes time actually works against you if you refuse to face the relevant issues” – Quote take from the Independent.
- Rumors over Societe Generale and its demise are said to be unfounded as the CEO tries to defend the banks position.
- Other concerns have also appeared over the fall in Italian and Spanish bonds. In addition, Spanish unemployment concerns also increased as benefits claimed rose 51,185.
- The market has been on a steady decline since the month end rally. With banks being hit hard.
- With unemployment figures released the market could see more of a fall. With the Peer to Peer group suggesting a 4/5% decline.
- The signs of a double dip recession seem to be easing and positive signs are coming from areas such as Chicago.
- Despite the poor market activity figures show that a slow growth could be appearing.
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