Canadian markets are likely to spend the week primarily being buffeted by forces abroad at least until Friday when the May jobs report is released. Even that is hardly a shoe-in for a distinguishable market effect in isolation of its big sister report south of the border released at the same time.A small rise in jobs during May is possible in the wake of a moderate drop the prior month but what-goes-down-must-go-up logic is rather unsatisfying in the absence of any useful job market indicators in advance. The growth in total employment, particularly in full-time jobs, has been fairly resilient since oil prices peaked last summer . That may not be particularly surprising since the energy sector represents only about 5% of total employment in Canada including indirect effects in light of the capital-intensive but relatively labour-light nature of the industry.Wednesday’s trade figures for April may show balance improvement on the back of a rise in oil prices, but any market effect is likely to have more to do with underlying details like what happened to volumes of exports and imports.Canada auctions 30 year real return bonds on Wednesday, and BoC Deputy Governor Lawrence Schembri will offer weekend comments.
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