Stocks flat as investors digest warning from Chancellor and US unemployment data

Stocks flat as investors digest warning from Chancellor and US unemployment data

Stocks in the UK and Europe have opened flat this morning as investors consider disappointing US unemployment numbers. The data indicates that there were 778,000 initial jobless claims last week which was worse than economists were expecting.

In his review on Wednesday, Chancellor Rishi Sunak introduced controversial spending cuts and warned that the UK economic emergency “has only just begun”. Forecasts are predicting the biggest economic decline in 300 years with the UK economy expected to shrink by 11.3% this year.

The upbeat tone of the market over the last few days receded a little on Wednesday as investors digested recent events and were in no rush to commit ahead of the Thanksgiving break today which means US markets will be closed.

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