Wednesday, October 15, 2008

Markets fall as unemployment rises

UK unemployment has risen to 1.75 million, with more than 164,00 being made jobless between June and August, the biggest rise since 1991. The 5.7% increase in people seeking work does not take into account thousands who have lost their jobs in September and early October as the credit crunch and financial crisis forces companies to streamline their operations. The British government said it would release £100 million in funds to be injected into training schemes. But the rhetoric and promises will be of little comfort for thousands of families struggling to pay their bills and mortgages [BBC].
There was some good news as some petrol retailers dropped prices in the UK. Asda and Morrisons, two leading supermarket chains, have dropped prices of unleaded fuel to just below £1 per litre [Sky News].
Meanwhile stock markets were once again in turmoil following gains seen on Monday and Tuesday [CNN / BBC]. The FTSE 100 fell over 7.16% while the CAC 40 and DAX also closed down 6.82% and 6.49% respectively. The Dow Jones has alsoi seen falls throughout the day with at least a 3% drop on Wednesday trade so far. In China there were also falls on the Shanghai Composite Index which declined 1.12% [Sky News].

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