Spanish unemployment rose for a third consecutive month

The number of unemployed people in Spain rose for a third month in a row in October amid deepening recession in the country. According to the Spain's Labor Ministry, 4.8 million Spaniards are now out of work, as the number of unemployed people jumped by a seasonally adjusted 128,200 in October, beating analysts' expectations for an increase of 90,500. At the same time, Spanish government expects overall jobless rate to ease to 23.3% in 2013, from current 25.02%.

"The situation is serious," said Ricardo Santos, an economist at BNP Paribas SA in London. "There is still room for a deterioration in unemployment. Activity is weak and the government will reduce jobs as there are strict targets to adjust the number of public-sector temporary workers, especially in health and education."

The Stoxx Europe 600 Index lost 0.60 per cent to 273.21. Germany's DAX Index erased 0.51 per cent to 7,326.47, while France's CAC 40 Index tumbled 1.26 per cent to 3,448.50.