Unemployment, A Tentacle to Drag Us Under?

IN June 17,801 million people were “officially” unemployed in the E.U.

According to Eurostat, the E.U’s official statistics office, this figure is higher than May’s unemployment figure by 123,000 making Junes figure a record breaker. The highest unemployment number since the E.U was formed in 1999.

“Another horrible set of labour market data for the Eurozone, which bodes ill for consumer spending and growth prospects,” said Howard Archer, chief European economist at IHS Global Insight.

Not the most optimistic and uplifting comment there, but Mr Archer is merely pointing out what we can all see.

What’s more to add to the woes analysts are pin pointing Germany as being next in line for unemployment rises.

Eurostat also said that inflation was unchanged at 2.4 % in July which remains above the ECB’s mandate target.

The unemployment is just one of the tentacles attached to the nightmare animal that is the European quagmire of debt burden and recession!

Jonathan Ravelas, chief market economist at BDO Unibank was quoted as saying “What the European Union did in the last two years was to provide the necessary steps to prevent a default. However, the problem continues to evolve as the global economy slows down,”

He also said he expected Europe’s debt crisis to be at the forefront all the media headlines for the next few years, which, he says is at best optimistic.

So more doom and gloom you say?

We’re not here for doom and glow, just opportunities!

Ok, so we can’t ignore the global downturn and overall market depression but that doesn’t mean there isn’t still A LOT of money to be made every day.

Seriously,

Local market are still moving continuously the FTSE companies are still leap frogging each other every single day, and were there’s movement there’s profit!

Barring a complete Euro break-down the markets will continue to fluctuate.

A spanner in the works though and the straw which could break the E.U’s back would be the collapse of the US markets.

The paper, spit and prayers holding together America’s financial foundations is so unstable right now.

A sharp fall on the NASDAQ could completely wash away the false economy created by the FED. Obviously American politicians and American based credit agencies like Moody’s, Standard & Poor’s and Fitch are going out of their way to shift the focus from home to Europe across the water but it’s hard to believe it’s much worse and the numbers coming out of America show things there are in a lot worse condition.

One to keep an eye on sure, but until it happens keep your better eye on the markets as they bounce up and down everyday.