U.S. unemployment rate dips below 4%

Unemployment hit a 30 year low at 3.9%, non-farm payrolls are up 340,000 and average hourly earnings are up 0.4%. Futures traders held stock values fairly well in the face of the strong report, despite the fact that it confirms the view of nascent inflation in the U.S. economy. The drop below 4% on the unemployment rate has some traders worried.

Canada’s jobs report was not nearly as strong. Employment rose by just 4,800 in April, well below expectations of 32,000. Full-time jobs fell 28,900, offset by an increase in part-time jobs. The unemployment rate remained unchanged at 6.8%.

Statistics Canada also reported that March building permits were worth $3.2 billion, up 11.5% from February. Both residential and non-residential sectors contributed to the increase.

Markets are mixed in Europe this morning. London’s FTSE rose 50 points to 6,250. The French CAC 40 has dropped 31 points to 6,460. Germany’s DAX is up 43 points to 7,430.

The euro rose against the dollar in early trading on speculation that the European Central Bank will move to prop up the currency. ECB president Wim Duisenberg said the central bank “will do all it can” to ensure the falling euro doesn’t fuel inflation.

The only merger news is speculation that R.J. Reynolds Tobacco Holdings Inc. may bid for Nabisco.

In Asia, the Hang Seng was quiet, dropping just 45 points to end the week at 15,268.

Sierra Wireless has announced it will offer 2.2 million new shares.