Canadian shares are anticipated to open with a slightly negative bias this Friday morning, influenced by earnings updates and fresh economic data from both the U.S. and Canada.
The Canadian GDP data for the first quarter is set to be released at 8:30 AM ET. Notably, the Canadian economy expanded by 0.2% in the fourth quarter of 2023, rebounding from a revised 0.1% contraction in the prior period. Preliminary estimates suggest that Canada's GDP held steady in March; in February, the economy grew by 0.2%, falling short of the preliminary estimate of 0.4%.
BRP Inc. (DOO.TO) reported a first-quarter net loss of C$7.4 million or C$0.10 per share, compared to a profit of C$154.5 million or C$1.92 per share from the previous year. The company has updated its full-year 2025 normalized earnings guidance to a range of C$370 to C$450 million, with earnings per share projected between C$6.00 and C$7.00.
Laurentian Bank of Canada (LB.TO) disclosed a net loss of C$117.5 million and a loss per share of C$2.71 for the second quarter of 2024, contrasting with net income of C$49.3 million and profit per share of C$1.11 from the year prior.
Canadian Western Bank (CWB.TO) reported a second-quarter net income of $76 million and adjusted earnings per common share of $0.81, both reflecting a 9% increase from the previous year.
On Thursday, the Canadian market closed on a positive note, driven by buoyant earnings updates from the Royal Bank of Canada and the Canadian Imperial Bank of Commerce. Eased concerns over potential Fed interest rate hikes also contributed to the market's strength.
The benchmark S&P/TSX Composite Index rose by 173.73 points or 0.79%, closing at 22,071.71. Throughout the day, the index fluctuated between a low of 21,915.30 and a high of 22,108.76.
Asian stocks concluded on a mixed note Friday, despite a downward revision to U.S. first-quarter GDP data that rekindled hopes for potential Fed rate cuts this year. Regional gains were limited by hawkish comments from New York Fed President John Williams and the release of sluggish PMI data from China.
In Europe, stocks are showing a mixed performance in choppy trading conditions after data revealed that Eurozone inflation rose for the first time this year, hitting 2.6% year-on-year in May. This has intensified concerns about the European Central Bank's pace in cutting interest rates.
In the commodities market, West Texas Intermediate Crude futures are down $0.07 or 0.09%, trading at $77.84 a barrel. Gold futures have declined by $1.70 or 0.07%, priced at $2,364.80 an ounce, while Silver futures have dropped by $0.044 or 0.14%, standing at $31.490 an ounce.
