By James Langton
(June 9 – 09:00 ET) – The U.S. Producer Price index for May was released this morning. It’s unchanged and that’s below expectations of a 0.1% increase. However, the core rate was up 0.2%, a little higherr than expected. The mixed results have been embraced positively by futures traders who see it as a sign of subdued inflation.
Canadian jobs numbers are out today, too, showing strong growth to the economy. Employment rose by 42,000, with almost all of that in full-time employment. The unemployment rate fell to 6.6% from 6.8%, its lowest level since March 1976. The reading should keep the Bank of Canada wary of inflation.
Statistics Canada is also reporting strong corporate profits. Operating profits surged to a record $53.3 billion in the first quarter, up 12.3% from the fourth quarter of 1999.
Also in Canada, the New Housing Price Index, was up 0.2% in April compared with March, and up 2.1% from April 1999.
Worldwide economic statisticss show that the European economies grew 0.7% in the first quarter. Japan’s economy grew at 2.4%, below expectations of 2.6%. The Yen fell, but the Euro bounced on the news.
In Europe, stocks are mixed with utilities and insurers up and telecoms sliding. London’s FTSE has dropped 14 points to 6482. The French CAC 40 is up 43 points to 6566. Germany’s DAX has added 56 points to 7299.
In Asia markets were mixed once again. The Nikkei finished the week down 142 points to 16861 on the news of its slower than expected recovery. The Hang Seng managed a 243 point gain to 16120.