Bay Street Likely To Open On Cautious Note

(RTTNews) - The Canadian market is likely to open on a cautious note Friday morning with investors reacting to Canadian GDP data and the latest batch of earnings updates.

Investors also await the U.S. Personal Consumption Expenditure data, due this morning, for insights into the Federal Reserve's monetary policy.

Worries about tariffs and their impact on global economic growth will continue to weigh on sentiment.

Final data on Canadian GDP for the fourth quarter is due at 8:30 AM ET. The Canadian GDP expanded by 0.2% from the previous month in December of 2024, according to preliminary estimates.

A report from the Canadian Federation of Independent Business said the Business Barometer long-term index in Canada, which is based on 12-month forward expectations for business performance, declined for a third straight month to 49.5 in February 2025, the lowest in ten months, compared to a downwardly revised 54.5 in January.

In earnings news, Laurentian Bank of Canada reported net income of $38.6 million and diluted earnings per share of $0.76 , compared with $37.3 million and diluted earnings per share of $0.75 for the first quarter of 2024.

Boralex Inc., (BLX.TO) reported a net loss of $2 million for the quarter ended December 2024, compared with net earnings of $58 million in the year-ago quarter.

Docebo Inc (DCBO.TO) reported fourth-quarter 2024 net income of $11.9 million, or $0.39 per share, compared to net income of $3.2 million, or $0.10 per share for the comparative period in the prior year.

The Canadian market closed notably lower on Thursday, weighed down by losses in materials, technology and realty sectors. The mood remained cautious amid trade war fears as U.S. President Donald Trump confirmed 25% tariffs on Canada and Mexico from early March, and an additional 10% tax on Chinese imports. The President also announced plans to impose a 25% tariff on European cars and other goods.

Investors also digested a slew of earnings updates, including bank majors Royal Bank of Canada, Canadian Imperial Bank of Commerce and Toronto-Dominion Bank.

The benchmark S&P/TSX Composite Index settled with a loss of 200.12 points or 0.79% at 25,128.24, the day's low. The index touched a high of 25,417.52 at the start.

Asian stocks closed weak on Friday as traders grappled with underwhelming Nvidia Corp. results and U.S. President Donald Trump's new tariff threats.

China vowed to take "all necessary countermeasures and defend its legitimate rights and interests" after Trump said he would impose an additional 10 percent tariff on Chinese imports, intensifying a brewing trade war between the world's two largest economies.

European stocks are mostly weak with investors digesting the latest batch of earnings updates, and disappointing results from Nvidia Corp. Worries about the impact of potential fresh tariffs by the Trump administration weigh as well on sentiment.

In commodities, West Texas Intermediate crude oil futures are down $1.01 or 1.4% at $69.34 a barrel.

Gold futures are down $20.10 or 0.7% at $2,875.80 an ounce, while Silver futures are lower by $0.395 or 1.23% at $31.715 an ounce.