In what promises to be another thin trading day, with U.S. markets closing early at 13:00 ET, stocks are pointing to a strong rally on the open. Bargain hunting action and improved economic sentiment are helping the market.

U.S. traders are feeling a little cheerier today after it was reported that June payrolls grew by 36,000. This was less than expected, and the unemployment rate rose to 5.9% as a result, but it means that traders don’t have to worry about interest rate hikes for months.

In Canada, employment rose an estimated 66,000 in June, propelled by a large increase in full-time jobs. The unemployment rate in June fell 0.2 percentage points to 7.5%. June’s employment growth was almost entirely in full-time work, with 60,000 new jobs. Since the labour market rebound began in January, employment has increased 303,000 (+2%).

Traders are also shaking off the latest accounting scandal, with Great Atlantic & Pacific Tea Co. revising its results after uncovering accounting irregularities. However, the revisions actually improved the company’s results for the past three years.

In Europe, stocks are already trading higher with bargain hunting and recovery hopes driving the trade. The FTSE is up 87 points to 4,558. The CAC 40 has gained 97 points to 3,794. The DAX has added 105 points to 4,364.

Overnight in Asia, stocks finished the week with a rally, too. The Nikkei gained 193 points to 10,826. The Hang Seng added 41 points to 10,806.

In M&A news, Goldman Sachs Group Inc.’s Whitehall real-estate fund is buying an Italian property venture for US$973 million.