Positive jobs data feeds markets

Today’s jobs data is expected to
dictate the direction that the U.S.
Federal Reserve Board takes at its
November 16 meeting. The U.S.
market was looking for about
322,000 new jobs, and it got
310,000. However the unemployment
rate, which was expected to hold
steady, dropped to 4.1% from 4.2%.
The most important component, the
average hourly earnings, rose
just 0.1% down from expectations
of 0.2%. Traders view this news
as very positive for stocks,
speculating that the Fed won’t
tighten.

Statistics Canada released
employment data this morning too –
recording 79,500 new jobs in
October. The unemployment rate
dropped from 7.5% to 7.2% in the
month. With employment pressure
continuing to build here too,
traders will expect the Bank of
Canada to follow the Fed on any
tightening move.

In Europe, markets held their
breath ahead of the U.S. report,
before rebounding. The FTSE 100
was down 17 points. While the DAX
has dropped 15 points, and the
French CAC 40 is up 11 points.

Asian markets mainly stayed on
the sidelines with the U.S. data
looming. The Nikkei closed up just
seven points, while the Hang Seng
slipped off just 41 points.

In our own big takeover battle,
Onex Corp. has again upped
its offer for Air Canada.
Shareholders will have the option
of cash or shares, as long as Onex
has to pay no more than 37.45% of
the whole deal in cash.