LONDON: Data showing lacklustre job creation in the United States squelched a rally on European equity markets on Friday, also sending the dollar and Wall Street lower.
Data from the US Labor Department showed the economy generated a paltry 38,000 net new positions in May, a quarter of the amount expected, and the lowest number since September 2010.
Coupled with downward revisions to the two previous months’ totals, removing 59,000 jobs originally tabled, the report crumbled the widely accepted picture that the US economy was picking up solidly from a first-quarter slump and pulled the rug out from expectations under the Federal Reserve will raise interest rates this month.
Expectations had been running high for a June or July US rate hike after Federal Reserve chair Janet Yellen recently said that such a move could be justified “in the coming months”, citing solid US economic growth and a strengthening labour market.
Copyright AFP (Agence France-Presse), 2016
Courtesy : BRecorder