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Job loss rate is 64-year high in US

08 January 2009 07:49 (UTC +04:00)

Baku. Vahab Rzayev - APA-Economics. The Dow Jones industrial average ended down 245.40, or 2.72 percent, to 8,769.70, its biggest point and percentage decline since Dec. 1. The Standard & Poorâ€™s 500 index fell 28.05, or 3 percent, to 906.65. It was the biggest drop for the index since Dec. 1.
The dollar may weaken a second day against the yen before U.S. government data forecast to show unemployment increased, reinforcing investor expectations for a protracted recession, Bloomberg reports.
The greenback may also decline for a second day versus the euro after a private report showed yesterday that U.S. employers cut more jobs in December than economists estimated. Australiaâ€™s currency may weaken after prices for commodities the country exports fell, suggesting corporate revenue will decline.
Companies in the U.S. slashed 693,000 jobs in December, the most since records began in 2001, ADP Employer Services said yesterday. The median forecast of a Bloomberg News survey of 24 economists was for a reduction of 495,000.
U.S. nonfarm payrolls fell 500,000 in December, bringing last yearâ€™s decline to 2.4 million, the most since 1945, according to a Bloomberg survey before Labor Department figures due tomorrow. The unemployment rate likely jumped to 7 percent, the highest level since 1993.
European stocks closed sharply lower on Wednesday, snapping a New Year rally as massive US job losses and profit warnings jolted investors who were hoping the worst of the global crisis might be over.
The FTSE 100 index of leading British shares closed down 131.41 points, or 2.8 percent, at 4,507.51, while Germanyâ€™s DAX fell 88.84 points, or 1.8 percent, to 4,937.47. Franceâ€™s CAC-40 finished 50.13 points, or 1.5 percent, lower at 3,346.09.