Stock markets around the world declined on Thursday.
July 6, 2012– On Thursday, the euro and U.S. stocks declined, as stimulus measures from major banks failed to heighten investor confidence. Investors were awaiting the June jobs report from the U.S. government to see any signs that the debt crisis in Europe is weighing down the recovery in the U.S.
The Central Bank in Europe cut its interest rate to a new record low. China surprised many investors by cutting its main lending rate again, after doing so less than two months ago. The euphoria of the measures initially helped drove up equities in Europe to a high of two-months, but had disappeared once Wall Street’s opening bell was heard.
As the day went on, investors wondered if the Federal Reserve would extend any new stimulus packages that could help get Wall Street and the economy running once again. One strategist said that if one or two more bad jobs reports were released then the Fed would have to release more stimulus.
On Thursday, payroll services giant ADP announced that the private sector had added 176,000 jobs in June. In May, the increase was 136,000. Initial claims for unemployment benefits also drop last week. Nevertheless, investors were still worried about Friday’s federal jobs report, which is expected to reveal only a slight increase in new jobs, if any.