Euro Services Dip Affirms Somber Economic Mood

(Fri, July 3, 2009) Financial markets ended the week on a sober note after U.S. jobs data jolt sentiment about the potential for economic recovery.

Euro zone PMI data released on Friday reinforced a view created by bigger than expected U.S. job losses in June that the global economy is still struggling to pull out of recession. The euro zone Services Purchasing Managers Index fell slightly in June to 44.7 from 44.8 in May, said data provider Markit. A bigger-than-expected 0.4 percent month-on-month drop in euro zone retail sales in May added to concerns that the world's economy is not yet out of the woods.