Markets fell sharply yesterday after a 467,000 drop in US employment for June dashed hopes that the recession in the world's biggest economy is all but over.
Unemployment rose from 9.4 per cent to 9.5 per cent, suggesting the US is in the early phase of stabilisation. The US economy could continue to decline for months, albeit at a less precipitous rate than at the turn of the year, it shows.
The report – which came as investors were growing sceptical about the so-called “green shoots” of recovery – sent US and European shares and commodity prices tumbling.
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