European sovereign default risk rose to a record after a reportshowed employment in the U.S. unexpectedly stagnated in August,adding to signs the global economic recovery is weakening.

The Markit iTraxx SovX Western Europe Index of credit- defaultswaps insuring the debt of 15 governments rose 11 basis points to310 at 1:40 p.m. in London, surpassing an all-time high closingprice of 308 on Aug. 26. Swaps tied to Italian debt jumped 12 basispoints to 397, topping last month's record closing price of 391,according to CMA.

Payrolls were unchanged last month, the weakest reading sinceSeptember 2010, after an 85,000 gain in July that was less thaninitially estimated, Labor Department data showed today inWashington. The median forecast in a Bloomberg News survey calledfor a rise of 65,000.

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