Shares flat on US jobs and euro zone weakness

08/09/11 17:22 CET

economy

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The world’s stock markets continue to be volatile.

Wall Street is lacklustre as figures showed the US jobs market remains weak with an increase in new applications for jobless benefits last week.

Tomorrow President Barack Obama will detail his plan to improve the employment situation.

He is expected to propose tax cuts for middle-class households and businesses and new spending to repair roads, bridges and other infrastructure.

European shares started the day up but then pared their gains.

That as the European Central Bank held interest rates at 1.5 percent and ECB President Jean Claude Trichet said the euro zone’s economy will grow more slowly than previously expected, and that risks to medium term inflation have moderated

The fact that the region’s recovery is losing momentum makes further interest rate rises unlikely.

More about: Economic crisis, New York, Wall Street

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