Asian markets tumble over EU debt crisis, US jobs report

Currency traders monitor exchange rates in a dealing room at the Korea Exchange Bank, Seoul, May 7, 2012

Source: Press TV
http://www.presstv.ir/detail/2012/06/04/244522/asian-shares-plunge-over-us-eu-concerns/

Asian shares have sharply tumbled following reports of a gloomy US employment situation as well as concerns over the possibility of a eurozone breakup.

Japan’s market lost over two percent on Monday morning, reaching a level not seen since late 1983, while Hong Kong plummeted over 2.3 percent.

Shanghai was 1.24 percent lower, Sydney skidded 1.84 percent and Seoul lost 2.60 percent.

The falls come as Washington has put the number of jobs created in May at 69,000 - the slowest rise in 12 months. Meanwhile, leaders across the eurozone are facing a political and economic challenge in Greece.

New data released late last week showed more signs that growth is slowing in both China and India, which have until now been relatively bright spots for the global economy.

On top of the alarming jobs outlook in the United States, investors are deeply worried about the eurozone debt crisis. Unemployment in the eurozone has hit a record high of 11 percent.

The Dow Jones industrial average fell 2.22 percent on Friday, wiping out its gains for the year, and the main index of the German stock market closed down 3.4 percent.

Greece's political and economic turmoil led to mounting concerns among eurozone members that Athens would not comply with the austerity measures it agreed to with its European neighbors in exchange for the endorsement of the second financial bailout, and would finally leave the 17-nation bloc.

The head of the European Central Bank earlier this week told European Union leaders that the single currency union is unsustainable in its current form.

US home prices hit 9-year low

Source: Press TV
http://www.presstv.ir/detail/171141.html

A report by the US National Association of Realtors shows that home prices in America have dropped to their lowest level in nearly nine years.

According to the association, home prices plunged nearly 10 percent in February, a Press TV correspondent in Washington reported on Monday.

Nearly four million US homes are likely to be lost in foreclosures by 2012, says the report. That is in addition to nearly seven million homes that have already been foreclosed because owners could no longer afford to make the monthly mortgage payments.

“We are heading for a double dip in the housing market at the national level; actually we are already there,” economist Jacob Kirkegaard told Press TV.

The Americans do not feel that they are out of the recession yet and “that is going to affect their willingness to go and consume, their willingness to take risks, starting new businesses, and it is basically going to perpetuate these very poor economic conditions,” he added.

A new Gallup poll has revealed that nearly three out of every four Americans say they are a lot more worried about the economy than other issues in America.

According to the US Department of Labor, things are not much better in the job market, with unemployment climbing in nearly all major cities in the United States.

“We need to get in two to three thousand new jobs per month to really create a self-sustaining recovery at the job market, and we are clearly not there yet,” Kirkegaard said.

“You do not have the construction sector; you have lower consumer spending, and as a result of that, you have lower business spending. So, that is really the link,” he pointed out.

Kirkegaard predicted that the shadow inventory of foreclosed homes will continue to pull down the US economy for another 12 to 18 months