Global Stocks Down as US Job Losses Rattle Markets

Employers may have shed 75,000 posts
By Rob Quinn,  Newser Staff
Posted Sep 5, 2008 2:00 AM CDT
Unemployed workers enter the employment training facility, JobTrain, in Menlo Park, Calif., Wednesday, July 30, 2008.    (AP Photo/Paul Sakuma)
camera-icon View 2 more images

(Newser) – Stocks fell in Europe and Asia today, marking the worst weekly slump in 6 years, according to the MSCI World Index. Markets were depressed by grim news expected in the latest US employment report due out this morning, reports Bloomberg. Economists predict figures will show a US loss of 75,000 jobs last month—the worst drop in almost 5 years. "The labor market pretty much hit the skids in August,'' said an analyst.

Observers fear the data will convince investors that recession is inevitable.The unemployment rate could soon top 6%, predicted the president of the Federal Reserve Bank in Boston. That would mean a total of 2 million jobs lost since the credit crunch hit last year. Indicators suggest that last month's losses could be even higher than 75,000.