Stocks are pointing to a down open this morning, after U.S. jobs data came in weak as expected.

The U.S. unemployment rate rose to 4.5% in October as 415,000 jobs were lost. The rate is now at a five-year high. The expectation is that the worsening jobs picture deepens the recession.

In Canada, employment was unchanged in October, but the unemployment rate edged up 0.1% to 7.3%. Internally the report looks weaker with an increase in part-time work offsetting a similar decline in full-time employment. Total hours worked, which had been trending down since January, fell sharply in October, down 3.3%.

In other news, the Argentine debt problem is back. Argentina now plans to default on US$95 billion of bonds by swapping the debt for securities that pay lower interest rates.

European stocks are mixed this morning. Early gains have been pared by selling since the U.S. jobs data was reported. Prudential plc, the U.K.’s second-largest insurer, is trading higher today after it announced plans to cut 2,100 jobs.

The FTSE is still up 33.5 points to 5,105. The CAC 40 is down seven points to 4,360. The DAX has dropped 27 points to 4,609.

Overnight in Asia, stocks were strong, following yesterday’s heavy rally in the U.S. The Nikkei gained 37 points to 10,384. The Hang Seng added 27 points to 10,186.

In earnings news, Air Canada reported a preliminary operating loss of $57 million and a pre-tax loss of $160 million. This compares to operating income of $249 million in the third quarter of 2000.

The airline estimates that approximately $163 million in operating losses were incurred for the September 11 to 30 period. Removing these estimated losses, it would have had an estimated operating income of $106 million in the 2001 quarter.