The US jobless figures have just come in, and they have added to the grim tone. February non-farm payrolls fell by 63,000, compared to expectations of a 25,000 gain.
This is the first time since June 2003 that the payrolls have fallen two months in a row. On top of that the gains shown in December have been revised down from 82,000 to 41,000 and the January losses up from 17,000 to 22,000. While this gives a clear indication that it is not advisable to take the first set of figures for the month at face value, it does add to the general fear that the US is heading for recession.
The one bright spot was that the jobless rate was 4.8%, compared to forecasts of 5%.
The FTSE 100 has extended its gains on the news, and is now down 104.7 points at 5661.7. The dollar has also fallen further, at a record low against the euro and an eight year trough against the yen. The Dow futures are also down, showing an 88-point opening fall.
The market is also spooked by news that the US Federal Reserve had moved to increase liquidity in the market through its so called Term Auction Facility. All this has done has prompt concerns that there are even more nasties out there than we already know about. Of course, almost every day brings something out of the woodwork to add fuel to that particular fire, with Carlyle Group's problems merely the latest example.
The earlier rumour, it may be remembered, was that the Fed was planning an emergency rate cut after the jobs numbers. Who is to say that won't now happen.
