North American markets appear headed for a higher open Friday despite a report that showed the U.S. economy lost 539,000 jobs in April.

Here at home, Canada gained a surprising 35,900 jobs in April as the unemployment rate remained at a seven-year high of 8%.

South of the border, the jobless numbers are less positive. Nonfarm payrolls fell 539,000 in April, the U.S. Labor Department said, better than the mean expectation for a 610,000 decline. The government added 72,000 jobs but construction, manufacturing and retail saw deep losses.

The U.S. unemployment rate jumped 0.4 percentage point to 8.9%, the highest level since September 1983.

Investors will also react to the results of the stress tests of the 19 largest U.S. banks, released after the market’s close on Thursday.

The U.S. government said that its tests show that 10 of the banks will need a total of US$75 billion to withstand a deeper recession.

Wells Fargo and Morgan Stanley have already announced plans to raise capital.

The Canadian dollar opened Friday at US86.22¢, up 0.93 of a cent from Thursday’s close.

In commodities news, light, sweet crude rose US$1.50 to US$58.21 in electronic trading on the New York Mercantile Exchange.

Overseas, Japan’s Nikkei stock average rose 0.5%, while Hong Kong’s Hang Seng gained one%. In afternoon trading, Britain’s FTSE 100 gained 1.8%, Germany’s DAX index was up 2.9%, and France’s CAC-40 added 2.4%.

The benchmark index of the Toronto Stock Exchange fell on Thursday after four days of gains, dragged down by declines in the financial and energy group/

The S&P/TSX composite index ended down 176.38 points, or 1.74%, at 9,967.05.

The index rallied at the open, rising close to 2% and touching a 2009 high of 10,340.78, before fading.

The financials group was down 3.2% as life insurers reported weaker quarterly results.

The junior S&P/TSX Venture composite index gained 5.25 points, or 0.5%, to finish at 1,053.11.

In New York, U.S. stocks slipped as investors locked in profits from technology and banking shares.

The Dow Jones industrial average dropped 102.43 points, or 1.2%, to 8,409.85. The S&P 500 slid 12.14 points, or 1.32%, to 907.39. The Nasdaq composite index fell 42.86 points, or 2.44%, to 1,716.24.

IE