2012.06.04 16:15:08 MARKET TALK: Selling Euros, Buying CAD, SGD Instead of USD -Merk

By Karen Johnson TORONTO--Canadian Finance Minister Jim Flaherty said Monday that officials in Canada are concerned about the prospect of another global recession, with their top concern being Europe and the recapitalization of some of its most troubled banks. Mr. Flaherty said he will be holding phone talks Tuesday with his G20 counterparts, and "subsequently" with his G7 counterparts. After a speech in Toronto, Mr. Flaherty said that, although Europe remains the top concern for the global economy, dismal U.S. employment data released Friday is also worrisome for Canada. With 75% of Canada's exports going to the U.S., the economies are tightly linked, he told reporters. As reported, the U.S. Labor Department said Friday that the U.S. economy added 69,000 new jobs in May. That was less than half of what was expected. "Some softening in U.S. growth will put some pressure on our growth as well," Mr. Flaherty said, adding that Canada's growth so far has been largely in line with expectations for 2012. "But we have to watch," he said. "Because the employment numbers have been a bit bumpy" in Canada and in the U.S., he said. He said Canada, with its solid domestic economic fundamentals and its majority government, is "in a position to act" on the economy. "Our fiscal situation is sound," he said, and Canada has fiscal "room to move," should a downturn encroach on Canada's relatively robust economy. Write to Karen Johnson at karen.johnson@dowjones.com (END) Dow Jones Newswires June 04, 2012 10:16 ET (14:16 GMT)