Shock US jobs data sends markets diving

The FTSE has plunged into negative territory after disappointing US jobs data reignited fears over the economic recovery.

Figures out today show the number of new jobs created in June sunk to a nine-month low, with US nonfarm payrolls growing just 18,000 against expectations of a 90,000 increase. The shock figures pushed the unemployment rate up to 9.2%.

The gloomy data sent the FTSE, which prior to release of the data had been trading in positive territory, plunging into the red. By mid afternoon the index was down 37 points, or 0.6%, to 6017. 

Essar Energy, Vedanta Resources and British Sky Broadcasting Group - the media group whose takeover by Rupert Murdoch's News Corporation has been thrown into disarray following the hacking scandal - are all down over 3%.

Part-nationalised bank RBS has also fallen more than 2%.

The FTSE's woes are mirrored throughout Europe, with France's Cac 40 1% off the pace and Germany's Dax down 0.5%.

Meanwhile across the Atlantic the Dow is 0.8% in the red shortly after opening - with only Microsoft and Merck & Co registering gains - as investors fretted over the dour employment data.