FTSE slides on U.S. jobs data

By Simon Falush

LONDON (Reuters) - The worst U.S. jobs data in over 30 years sent the top share index 2.7 percent lower on Friday, with energy stocks and miners the heaviest losers as the unemployment figures highlighted the bleak demand outlook for commodities.

The FTSE 100 .FTSE closed 114.24 points lower at 4,049.37, having closed down 0.2 percent on Thursday. The index is down 5.6 percent this week and 37.3 percent this year.

Heavyweight energy shares weighed most on the index, as crude prices slid to below $42 to their lowest level since January 2005, after data showing the U.S. economy shed more than half a million jobs in November.

BP (BP.L) fell 6.6 percent, BG Group (BG.L) lost 7.4 percent, while Royal Dutch Shell (RDSa.L) shed 6 percent and Tullow Oil (TLW.L) dropped 10.3 percent.

"Clearly, the shocking deterioration in the U.S. labour market is a blow to the economy in general, and the housing market in particular... Above and beyond that the news will intensify the vicious circle as it will have a feedback effect on sentiment." Mark Cliffe, chief economist at ING Barings said.

The weak U.S. data intensified speculation that the Bank of England may ease monetary policy further, having cut interest rates by a full percentage point to two percent on Thursday.

"This is obviously going to increase the sense of urgency among policymakers in trying to shore up the badly affected sectors of the economy," Cliffe said.

Miners also suffered following a dip in base metals prices, with copper hitting a 3-1/2 year low.