Bay Street May Open With Slightly Negative Bias; U.S., Canadian Economic Data In Focus

(RTTNews) - Canadian shares may open with a slightly negative bias Friday morning, reacting to earnings updates, and fresh economic data from the U.S. and Canada.

Canadian GDP data for the first quarter is due at 8:30 AM ET. The Canadian economy expanded by 0.2% in the fourth quarter of 2023, recovering from a revised 0.1% contraction in the previous period.

According to preliminary estimates, Canada's GDP is expected to have remained unchanged in March. In February, the economy grew 0.2%, less than the preliminary estimate of 0.4%.

BRP Inc. (DOO.TO) reported first-quarter net loss of C$7.4 million or C$0.10 per share, compared to profit of C$154.5 million or C$1.92 per share a year ago. The company updated its full-year 2025 normalized earnings guidance in a range of C$370 to C$450 million and earnings per share in a range of C$6.00 to C$7.00.

Laurentian Bank of Canada (LB.TO) reported a net loss of C$117.5 million and a loss per share of C$2.71 for the second quarter of 2024, compared with net income of C$49.3 million and profit per share of C$1.11, prior year.

Canadian Western Bank (CWB.TO) reported second-quarter net income of $76 million and adjusted earnings per common share of $0.81, both up 9% from the prior year.

The Canadian market closed on a strong note on Thursday, with investors cheering buoyant earnings updates from the Royal Bank of Canada and the Canadian Imperial Bank of Commerce. Slightly easing concerns about the outlook for Fed interest rates helped as well.

The benchmark S&P/TSX Composite Index ended up by 173.73 points or 0.79% at 22,071.71. The index scaled a low of 21,915.30 and a high of 22,108.76 intraday.

Asian stocks ended on a mixed note Friday even as a downward revision to U.S. first quarter GDP data revived hopes for Fed rate cuts this year.

Regional gains were capped by hawkish comments by New York Fed President John Williams and the release of sluggish PMI data from China.

European stocks are turning in a mixed performance in choppy trade after data showed Eurozone inflation rose for the first time this year, reaching 2.6% year-on-year in May, adding to worries about how slowly the European Central Bank will cut interest rates.

In commodities, West Texas Intermediate Crude futures are down $0.07 or 0.09% at $77.84 a barrel.

Gold futures are down $1.70 or 0.07% at $2,364.80 an ounce, while Silver futures are lower by $0.044 or 0.14% at $31.490 an ounce.