Service Index Falls; Employment Shrinks

123jump.com Staff
03 Dec, 2008
New York City

U.S. stocks came under pressure after service index in November declined to 11-year low. The service industry is shrinking as consumers curtail spending, businesses lay off people and banks tighten lending. Separately private survey tracking jobs in private sector showed job loss of 250,000.

[R]11:10AM New York – U.S. stocks trade sideways after service industry index declines to 11-year low. Asian markets closed higher. European markets at mid-day edged up.[/R]

Service industry index fell to the lowest level in eleven years according to the Institue for Supply Management. The index dropped to 37.3 from 44.4 in October. The widely tracked index showed decelerating level of activities in various parts of the service driven economy as consumers battle tight lending conditions and businesses lay off people.

More people joined the lines of unemployment according to the data tracked by employment services provider ADP Employer Services. The survey estimated that tracks only private businesses estimated that 250,000 lost their jobs in November.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 140.41 or 1.79% to 8,004.10, Hang Seng index in Hong Kong increased 182.81 or 1.36% closed to 13,588.66 CSI 300 index in China higher 84.04 or 4.50% closed to 1,952.67. ASX 200 index in Australia increased 5.60 or 0.16% to close 3,533.80. The KL Composite index in Malaysia higher 1.78 or 0.21% closed to 847.53.

The Kospi Index in South Korea decreased 0.53 or 0.05% to close at 1,022.67. SET index in Thailand closed higher 5.60 or 1.45% to 392.92 and JSE Index in Indonesia increased 1.17 or 0.10% to 1,192.53. The Sensex index in India increased 8.19 or 0.09% closed to 8,747.43.

Europe Markets Review

In London FTSE 100 Index traded lower 17.08 or 0.41% to 4,105.78, in Paris CAC 40 Index decreased 31.77 or 1.01% to 3,121.13 and in Frankfurt DAX index traded lower 59.70 or 1.32% to 4,472.09. In Zurich trading SMI decreased 52.80 or 0.95% to 5,484.79.