Unexpected Increase In Initial Jobless Claims Adds Fear To US Economic Slow Down

proactive investors ^

[traumer]

Increase In US stock-index futures is down this morning as the initial jobless claims rose from 482,000 to 484,000, according to figures released by the Labor Department this mourning. The figure was higher than the forecasted 465,000.

The claims figure was consistent with economic data released earlier this week which suggests more stimulus maybe needed for the global economy. The Federal Reserve said that economic recovery is slowing down and has been buying US debt to hold interest rates down. Bank of England also downgraded their inflation and growth forecasts. In China, retail sales growth eased and new loan volumes also declined.

September contracts on the S&P 500 index is down 4.5 points to trade at the 1080.5 level. Dow Jones, Nasdaq 100, and S&P/TSX 60 index are all trading down 34, 9.5, and 0.3 points, respectively.

After filing for Chapter 11 bankruptcy on June 1, 2009, General Motors announced today that it is looking to raise $12 billion to $16 billion in its initial public offering. The US government currently owns 61% of the company.

In Europe, Londons FTSE 100 index and Germany`s DAX index is down 0.16 and 0.5%, respectively, on afternoon trading.

In Canada, the S&P/TSX Composite closed down 2% yesterday.

[redangus]

I remember back in the late 70’s getting the same letters. You would go in and interview, make the final cut and then 2-3 weeks later you would get the letter. It got to be pretty depressing after awhile. We worked our way out of it that time, but I am afraid we have some systemic issues this time that are going to make that very tough if not impossible.

[kinsman redeemer]

That was unexpected!