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FTSE falls 2.5 pct on U.S. jobs, euro zone data

Thu Jul 2, 2009 9:30pm IST
 
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* Energy stocks weigh as crude oil falls 3.6 percent

* Miners track cheaper metals; drugmakers, banks slip

By Farah Master

LONDON, July 2 (Reuters) - Britain's leading share index closed 2.5 percent lower on Thursday, with market sentiment hit by data showing U.S. employers cut more jobs than expected in June and unemployment in Europe hit a 10-year high.

The FTSE 100 .FTSE index ended down 106.44 points at 4,234.27 after closing 2.2 percent higher on Wednesday, the first day of the new quarter.

Data showed the world's biggest economy lost 467,000 jobs in June, 100,000 more than expected by economists and breaking a four-month trend of slowing U.S. job losses. [ID:nSP476861]

"This proves that we may not be at the bottom yet. The world's biggest economy, as we know them, is going to be dragged down," said Philip Gillette, a sales trader at IG Index.

The energy sector, which gained in the previous session on higher oil prices, took the most points off the index as crude fell more than $2 to trade below $67 a barrel. [ID:SYD481718]  Continued...

Britain's Prime Minister Gordon Brown speaks, as finance minister Alistair Darling listens at the G20 Finance Ministers meeting in St. Andrews, Scotland. REUTERS/POOL New
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