US all over.

"Landep News" 

US all over.

This Friday, the European stocks registered lower numbers because of the US monthly release regarding the employment figures which were lower than it was expected.

The first question that was raised because of this situation refers to the level of strength the US has to recover after the global crisis. This first question is immediately followed by a second one that takes interest in determining how much the American economy will influence the global growth. To answer both questions, the chief strategist at FxPro said that the American economy is still “in intensive care”.

Last month, the US nonfarm payrolls increased only by 18,000 and that meant not many jobs newly created for two months in a row. The payrolls data in the previous two months offered a total of 44,000, leading to an increase of 25,000 jobs in May.

A different household survey announced that the jobless rate increased with 0.1 % in June and is now 9.2%. This is the highest rate level registered since the end of 2010. This year, during three months in a row the unemployment rate continued to increase. The Dow Jones Newswires’s economists forecasted that the payrolls will increase by 125,000 and the jobless rate will reach 9.1%.

The ADP employment survey announced positive numbers for June and many newly created jobs and because of this optimistic statement, the figures released on Friday shocked everybody. The result of this situation will be a lot of calls from those who have already asked the Federal Reserve to intervene and take some measures.

Unfortunately, the US employment figures also influence the European stocks. As a result, the Stoxx Europe 600 banking index recorded a down fall of 2.3% and remained at 179.75 while the Italian banks had to face an even more disappointing down fall: the Intesa Sanpaolo recorded a down fall by 4.5% while the Banca Popolare di Milano lost 6.1% and for the UBI Banca the price per share was lower by 5.8%. The Milan Stock Exchange suspended temporarily the UniCredit shares and afterwards they ended down by 7.8%. Even if the Governor of the national Bank of Italy stated that the “Italian banks will pass the Europe-wide stress tests”, the shares of these financial institutions continue to fall down. The rumors about the political instability of Italy also contributed to this situation.

Ofcom, the UK’s communication regulator, announced on Friday that it will advise the government on the matter regarding the phone hacking allegations related to a future New Corp’s takeover of the British Sky Broadcasting Group. Because of these rumors the BSkyB shares recorded a down fall of 7.6% while New Corp recorded a 3.2% slid in New York.

The stock markets in Asia finished the day much better than the European and the US markets. For example, the Nikkei Stock average increased by 11% and S&P/ASX 200 rose 1.1 %. Are Asian markets more stable?

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