By James Langton
(April 7 – 09:00 ET) – Canadian employment rose by 33,000 in February, leaving the unemployment rate steady at 6.8%. Economists were expecting 36,000 new jobs, but the current report seems to reflect a continued strong economy and the possibility of future interest-rate hikes.
In the U.S., employment is up 416,000 and the jobless rate remains at 4.1%. Analysts were anticipating fewer than 400,000 new jobs, but they also expected the rate to drop to 4.0%. Manufacturing payrolls slipped, while service industry employment boomed. Average hourly earnings were up 5¢.
The numbers were perceived as tame. Stock futures sold off immediately on the news and then recovered right away. Analysts are expecting this report to leave central bankers on track for another rate increase at the next U.S. Federal Reserve Board meeting on May 16, 2000.
In Europe, stocks are bouncing back. Media and chip firms are up, but banks are down. London’s FTSE is up 55 points to 6506. The French CAC 40 has gained 4 points to 6228. In Germany, the DAX is up 15 points to 7460.
In merger news, Bertelsmann AG and Audiofina SA will merge a broadcaster they share with Pearson PLC’s television unit. Dresdner Bank AG may be open to other merger offers now that the deal with Deutsche Bank AG is dead, according to its resigning chief executive.
Crude oil prices fell more than 1% to their lowest level in three months on consumption cutbacks.
In Asia, the week ended on an up note. Japan’s Nikkei closed ahead just 29 points to 20,253. The Hang Seng roared upward 450 points to close at 16,942.