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As expected the European Central Bank lifted rates 0.25% to 4.25% as oil soared above $US146 a barrel in Europe. And in the US the jobs market worsened: 62,000 jobs were lost last month, the unemployment rate remained at 5.5% and a further 55,000 jobs were lost in revisions of figures for previous months.

Inflation is a worry, no matter the type of economy. Oil prices are rising and acting like a demand eater, just as rising interest rates have been doing here. Oil surged over $US146 a barrel, then eased, stocks swooned, interest rates rose in Europe.

The Spherion(R) Employee Confidence Index dropped 0.8 points to 46.1 in June, showing a record-low level in 2008. The survey, conducted by Harris Interactive(R) on behalf of Spherion Corporation, reveals no movement in macroeconomic confidence with only 12 percent of workers saying they believe there are more jobs available and seven percent reporting the economy is getting stronger.