Canadian shares ended the first trading week of May on a high note, with the benchmark S&P/TSX Composite notching a fresh record high around the 19,470 level, led by gains in the healthcare sector, while a rally in gold prices pushed shares of precious metal miners deep into the green. Meanwhile, the Canadian economy shed more jobs than expected in April, and the jobless rate rose to 8.1%, above market expectations of 7.8%. Also, the Ivey Purchasing Managers Index dropped to 60.6 from a near all-time high of 72.9, pointing to a slowdown in economic activity growth. Looking for how it performed this week, the index is up almost 2%.

All three main US stock indexes gained ground on Friday, with the Dow Jones and the S&P 500 finishing at record closing levels as a disappointing payroll report eased worries about the Federal Reserve reducing its massive support anytime soon. Nonfarm payrolls increased by 266K only, well below forecasts of nearly one million, while the unemployment rate rose to 6.1%. The report raised concerns of a slower-than-expected jobs recovery and drove investors to the safety trade of big tech. However, such rotation was short-lived, with value-oriented stocks reasserting their dominance again amid prospects of robust economic recovery and cemented expectations that the US central bank will remain ultra-accommodative for the foreseeable future. For the week, the Dow surged 2.7% to snap a two-week losing streak. The S&P 500 added 1.2%. Meanwhile, the tech-heavy Nasdaq dropped 1.5% this week.

The US economy added 266K jobs in April of 2021, following a downwardly revised 770K rise in March and well below market expectations of 978K, as employers face worker shortage. Notable job gains in leisure and hospitality (331K), other services (44K), and local government education (31K) were partially offset by losses in temporary help services (-111K) and in couriers and messengers (-77K). Jobs also fell in manufacturing (-18K) and retail trade (-15K) and were unchanged in construction. In April, nonfarm employment is down by 8.2 million, or 5.4%, from its pre-pandemic level in February 2020. Shortages of skilled workers and the supply of parts and materials could hurt factory employment in the short-run. Some analysts also consider that enhanced unemployment benefits are keeping people at home and not taking jobs.

The dollar index bottomed around 90.20 on Friday, a level not seen since late February, and recording its worst week since November 2020 in reaction to a payroll report that showed the US economy only added 266,000 jobs in April, well below market expectations of almost one million. Such reading heightened the uncertain outlook regarding the US job market recovery and cemented expectations that the US central bank will remain ultra-accommodative until the economy has further recovered. Earlier this week, the greenback touched a two-week high of 91.40 after Treasury Secretary Janet Yellen Yellen remarks’ created speculation that the Fed may have to scale back its support for the economy sooner than expected to stop the economy from overheating.

Copper futures climbed above the $4.7 per pound mark for the first time, as inventories stand at levels not seen in fifteen years, while speedy vaccination rollouts and trillions in dollars of economic stimulus boosted demand. Recent economic readings from the United States and China reinforced this view, while President Biden’s multitrillion-dollar infrastructure plan lent further optimism to the copper bulls. Also, given how crucial copper is in the transition to a carbon-free world, demand is due to outstrip supply due to lack of investment by large miners.

European stock markets extended their gains on Friday to end the week on a positive note, with the benchmark DAX closing around 15,370 on the back of upbeat economic data and a strong earnings season. German industrial production rose in March by the most in five months, while better-than-expected exports and imports figures from Europe's largest economy signalled a solid rebound in global demand. On the corporate front, BMW remains on track to meet its profit targets for 2021, although it noted that rising raw material prices and a global chip shortage could hit production in the second quarter. Siemens raised its full-year profit and sales guidance, while Credit Agricole's profits jumped in the first quarter. Adidas upgraded its outlook for 2021 due to stronger-than-expected demand for its products.

El Salvador consumer prices surged by 2.79 percent year-on-year in April of 2021, following a 1.77 percent increase in the previous month. It was the highest inflation rate since March of 2012, as prices advanced faster for housing & utilities (5.07 percent vs 2.54 percent in March) and transport (10.55 percent vs 2.34 percent). Meanwhile, food & non-alcoholic beverages prices fell (-0.04 percent vs 1.15 percent). On a monthly basis, consumer prices rose 0.64 percent, following a 0.79 percent increase in the prior month.

Germany's industrial production rose by 2.5 percent from a month earlier in March 2021, following two months of near 2 percent declines and beating market expectations of a 2.3 percent growth. It was the largest output increase since last October, boosted by the production of intermediate (1.2 percent) and consumer goods (2.9 percent), as well as energy output (2.4 percent) and construction activity (10.8 percent). On the other hand, the production of capital goods decreased by 0.4 percent. Compared with February 2020, the month before restrictions were imposed due to the coronavirus outbreak, production was 4.3 percent lower.

Gold has climbed above the $1,840 level for the first time since February in reaction to a disappointing payroll report which also spooked investors away from the dollar and pushed Treasury yields sharply lower. The US economy added 266K jobs in April of 2021, following a downwardly revised 770K rise in March and well below market expectations of 978K. Such reading heightened the uncertain outlook regarding the US job market recovery and cemented expectations that the US central bank will remain ultra-accommodative until the economy has further recovered. Aside from the economic headlines, the precious metal benefited from safe-haven demand stemming from the ongoing coronavirus crises as infection rates continue to accelerate in India and Japan. As a result, bullion recorded its biggest weekly gain since November, adding 3.5% this week.