The tone on stock markets is expected to be grim this week after investors were reminded in stark terms Friday that the European debt crisis is spreading and U.S. job creation is still woefully weak.

Worries about the pace of a global economic rebound will continue to depress the TSX energy and base metals sectors, both of which are down sharply from highs in April.

Financials will feel the pressure of investors worries about whether the European banking system can withstand big writedowns connected to sovereign debt.

At the least, investors were hoping that a strong U.S. jobs report would deflect worry away from the European debt crisis, which has depressed markets for weeks. But as it turned out, the U.S. Labour Department reported that 430,000 jobs were created last month versus the 517,000 that analysts had expected. But most of the jobs added were for the 2010 U.S. census and private sector job creation came in at only 41,000.