By James Langton

(April 27 – 09:00 ET) – Markets look ready for a rough day after receiving a slew of negative economic data. The U.S. employment cost index is up 1.4% and GDP is running at a 5.4% rate. The higher than expected numbers are sparking inflation fears and stock futures are down deeply as a result.

Statistics Canada is reporting that average weekly earnings is rising at a 2.8% annual rate, slower than the U.S. and on pace with inflation.

In 1999, the year over year gain in average weekly earnings was strongest in September, 1.4%, and December, 1.3%. In the first two months of 2000, average weekly earnings grew by an estimated 2.2% in January and 2.8% in February. Increases in both hours and wage rates contributed to the earnings growth. The strongest employment gains were in Ontario and Alberta.

The European Central Bank has hiked rates 25 basis points as expected. Yet the Euro continues to slide. In Europe stocks were mixed ahead of the U.S. data. London’s FTSE has gained 21 points to 6277. France’s CAC 40 is down 37 points to 6353. The German DAX dropped 27 points to 7362.

In Asia stocks slipped overnight. Japan’s Nikkei dropped 115 points to 18,019. The Hang Seng was down 34 points to 15,192.

The only merger and acquisition news is that Standard Chartered PLC will buy ANZ Grindlays Bank Ltd. from Australia & New Zealand Banking Group Ltd. for US$1.34 billion.

Call-Net Enterprises Inc. reported a loss of $1.11 a share, down from last year’s 73¢ per share loss. Laidlaw Inc., which twice delayed the release of its second-quarter earnings, has now reported a $4.48 per share loss, compared to net income 5¢ per share in 1999. The huge loss came thanks to $1.6 billion in write-offs.