By James Langton

(August 4 – 09:10 ET) – Traders are likely relieved that employment figures released in both the U.S. and Canada this morning do not include any unexpected shocks that would trigger an increase in North American interest rates.

Economists and traders spent the week awaiting the data. The U.S. reports that non-farm payrolls were down 108,000 in July. However, the number includes 290,000 census workers that hit the bricks, so private employment was actually up 138,000. U.S. unemployment remains at 4.0% and average hourly earnings were up 6¢, slightly higher than expected.

While U.S. employment growth was a fair bit weaker than expected, the wage gains were a little stronger. But, on balance, most observers believe the numbers won’t undo the likely stand-pat rate strategy the Fed will take at its August meeting.

In Canada, employment is reported to be down slightly, with 17,000 jobs lost in July, the second consecutive monthly decline. The unemployment rate increased 0.2% to 6.8%. Full-time employment was little changed in July, while part-time employment declined by 23,000.

Nevertheless, Canadian job growth appears to be slowing. Since March, monthly employment growth has averaged 4,000, compared with average monthly growth of 44,000 in the previous six months.

The report isn’t likely to change the Bank of Canada’s stance and it is expected to leave rates unchanged regardless of the Fed.

It is also reported today that the value of building permits rebounded in June to $3.1 billion, up 7.2% from May, after two straight months of decline. There were gains in both the residential and non-residential sectors.

In Europe, stocks are rebounding today after Wall St. refused to follow through on selling momentum yesterday. Telecoms and chips are leading the way. The FTSE is up 48 points to 6364. The CAC 40 is up 89 points to 6444 and DAX has ticked up 16 points to 7053.

In M&A news, Rio Tinto PLC has won the battle for North Ltd., a US$1.75 billion bid, trumping Anglo American PLC. And Bombardier Inc. admitted it will buy DaimlerChrysler AG’s Adtranz unit for US$714 million. Rampant speculation of the deal started yesterday, forcing the TSE to halt the stock, which will now resume trading.

In Asia, stocks were mixed once again. The Nikkei finished the week down 147 points to 15667 and the Hang Seng added 151 points to 17425.

In earnings news, Brascan Corp. reports that profit in the quarter ended June 30 rose to 53¢ a share from 35¢ in the same period a year earlier.

Clearnet reports negative operating cashflow of $39.3 million in the second quarter, a $12.7 million improvement from the same period last year. The company lost $2.80 a share in the quarter vs a $2.86 loss a year ago.

And Goldcorp Inc. said production is now underway at its new Red Lake Mine. The gold grade is estimated to be 1.86 ounces per ton, better than forecast.