German shares drop as US employment data increases fears over subprime woes |
|
|
|
Published
:
Fri, 07 Sep 2007 14:23
|
FRANKFURT (Thomson Financial) - Shares fell sharply in afternoon trade, with the DAX dropping more than 50 points, after fresh US employment data came in much worse than expected prompting investor worries that it may be indicative of a larger slump in the US economy.'Investors were looking to today's unemployment data partially as an indicator of how far the sub-prime lending crisis and subsequent housing market slump had effected other sectors of the economy,' a local trader said.At 2.54 pm the DAX had dropped 109.68 points or 1.44 pct at 7,512.04, dropping from 7,580.42 just before the data was released.'While the data from today does not conclusively tell me that the problems in the financial sector have snowballed, they are definitely not a step in the right direction.'On the positive side, the trader said the data will put pressure on the US Federal Reserve Bank to lower interest rates, perhaps at its next meeting on Sept 18.US employers in August unexpectedly posted their first monthly payroll decline in four years posting losses of 4,000 jobs in August, the Labor Department said today.The unexpected loss compared with a 118,000 increase economists polled by Thomson's IFR Markets had expected. The August decline is the first drop in non-farm payrolls since August 2003.Tyler.Sitte@thomson.comts/jlcCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
|
|
|
|
Print this Story
German shares TFN market data at 10.42 am 