North American stock markets are expected to open lower today as investors weigh higher oil prices and weaker than expected July employment reports in Canada and the United States.

Canadian employment was little changed in July, rising by 9,000 jobs, as fewer people entered the labour market in search of work. The unemployment rate edged down 0.1 percentage points in July to 7.2% Statistics Canada said today.

Analysts had expected and increase of at least 30,000 jobs.

Despite a pause during the first quarter of the year, StatsCan said employment has shown strength over the past 11 months with growth of 2.1%, or 325,000 jobs, since August 2003 when the recent upward trend began.

South of the border, U.S. non-farm payrolls grew by 32,000 last month, the smallest increase since December, the Labor Department said.

Economists had forecast for the U.S. economy to have created at least 240,000 jobs last month.

The weak numbers come amid fears the economic recovery may be fizzling.

In business news, HSBC agreed to buy a 19.9% stake in China’s Bank of Communications for US$1.75 billion, setting the stage for a massive expansion of the U.K. lender’s presence in China’s banking market.

European markets were lower at ahead of the U.S. jobs report. London’s FTSE 100-share index was down 0.5% at midday, while the Frankfurt’s key index, the Xetra DAX, fell 1.3%. In Paris, the CAC-40 slipped 0.8%.

Asian stock markets closed lower overnight, pushed down by rising oil prices and losses on Wall Street.

Tokyo’s Nikkei fell 88.32 points, or 0.8%, to 10,972.57 — its lowest since closing at 10,962.93 on May 25.

In Hong Kong, the key Hang Seng Index slipped 13.24 points, or 0.1%, to 12,478.68.

On Thursday, Canadian stocks fell just short of a second-consecutive 100-point drop, while U.S. stocks sank with the Dow falling below the psychologically key 10,000 level after NYMEX crude futures set a new high.

At the close, Toronto’s S&P/TSX composite index was down 95.08 points, or 1.14%, at 8,267.88. The junior TSX Venture exchange fell 2.47 points, or 0.16 of a point, to 1499.03.

On Wall Street, the Dow Jones industrial average closed down 163.48 points, or 1.61%, at 9,963.03. The S&P 500 was down 17.93 points, or 1.63%, at 1,080.7. The technology-laced Nasdaq composite index was off 33.43 points, or 1.63%, at 1,821.63.