Stock markets in the US and Europe plunged yesterday.
Perhaps the interest rate hike by Sweden's central bank had something to do with it? From Bloomberg:
Sweden's Riksbank raised its benchmark interest rate to a four-year high to contain inflation, adding that the financial market turmoil will prevent it from picking up the pace of rate increases.
The central bank increased the repurchase rate by a quarter point to 3.75 percent, the ninth increase since January 2006, the Stockholm-based bank said today in a statement. It kept a June forecast that the key rate would reach about 4 percent by year-end and 4.5 percent in two years.
More likely, though, investors just didn't like yesterday's US employment report for August. MarketWatch reports those details:
Nonfarm payrolls fell by an estimated 4,000 in August, the Labor Department said. This is the first decline since August 2003.
The nation's unemployment rate held steady at 4.6%...
Adding to the sense of weakness in employment, payrolls in June and July were revised lower by a cumulative 81,000. Read the full report.
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