Canadian employment numbers are the key piece of economic data today.  The figures for April show a net increase of 12,500 jobs with the unemployment rate holding steady at 7.2%.  

The Canadian economy generated 36,000 new, full-time jobs last month – mainly in the public sector – while shedding almost 24,000 part-time positions.  The numbers matched expectations for a modest improvement over the loss of 54,500 jobs in March.  

North America markets traded higher in the early going today.  They appeared to take a breather yesterday, all trading down and ending the day lower after several days of record high closes.

Bond yields are up by 1 – 3 bps.

Housing is the highlight again today in Canada.  StatsCan’s new home price index for March edged up 0.1% over February.  Calgary led the way.  Year-over-year new home prices are up 2%, a slight slowdown from the 2.1% increase registered in February.  

Internationally, the Bank of England issued its latest policy announcement.  As expected there has been no change.  The Bank’s benchmark interest rate stays at .05% and it is maintaining its stock and bond purchases at 375 million pounds.

The weekly read on first-time jobless claims in the U.S. dropped by 4,000, falling to a fresh five-year low.  The four-week rolling average fell by 6,250.   

Markets didn’t react in any material way, but North American equities all started the day lower.

Bond yields are down 3 – 5 basis points.

Another quiet day for data with Canadian housing starts in April standing as the highlight.  The latest numbers from Canada Mortgage and Housing Corporation indicate builders are taking note of the slowdown in the housing market. 

Home starts for April met the downgraded expectations coming in at 175,000; down from 181,000 in the previous month.  The decline was led by a 3.5% drop in multiple urban starts.  Starts of urban singles were flat.  The six-month rolling average dropped about 3% in April

Equity markets remain upbeat opening higher again today, building on record setting performances from the Dow and the S&P 500 on Tuesday.

Bond yields are essentially flat with a 0 – 1 bps increase.

A very light day for data today so markets will be looking to each other for direction.  In the early going that direction is up.  Traders seem pleasantly surprised with the Australian central bank’s move to cut its policy rate.  The Reserve Bank of Australia has trimmed a quarter of a percentage point off its benchmark rate, dropping it to 2.75%.  The move is an effort to devalue the Aussie dollar and help a flagging export sector, particularly mining.

Japan’s efforts to boost its economy appear to have finally hit the stock markets.  The Tokyo Nikkei closed trading today at a five year high. 

U.S. traders remain encouraged by the better than expected employment numbers from last week.  North American equities opened higher.

Bond yields are up 5 – 6 bps