Canadian shares are poised for a downturn on Friday morning, reflecting broader global market weakness amid concerns about a global economic slowdown. The primary focus remains on the upcoming U.S. non-farm payroll data.
Investors are also expected to react to a range of earnings reports from both Canadian and U.S. companies.
Imperial Oil Limited (IMO.TO) reported a second-quarter net income of $1,133 million for 2024, up from $675 million the previous year.
Telus Corp (T.TO) announced a 12.8% increase in net income, reaching $221 million in the second quarter of this fiscal year, compared to $196 million in the same period last year.
Magna International Inc. (MG.TO) posted a net income of $313 million for the quarter ended June 2024, down from $339 million in the corresponding quarter of the prior year.
Canadian Utilities Limited (CU.TO) reported adjusted earnings of $117 million ($0.43 per share) for the second quarter of 2024, an increase from $100 million ($0.37 per share) in the same period in 2023.
ATCO Ltd. (ACO.X.TO) announced adjusted earnings of $96 million ($0.86 per share) for the second quarter of this fiscal year, up from $87 million ($0.77 per share) in the previous year’s second quarter.
Enbridge Inc. (ENB.TO) reported adjusted earnings of $1.2 billion ($0.58 per share) for the second quarter, a decrease from $1.4 billion ($0.68 per share) in the year-ago quarter.
On Thursday, the Canadian market retreated after reaching a record high, with stocks falling due to disappointing earnings updates and concerns over growth prospects following weak economic data from the U.S. and Europe. The benchmark S&P/TSX Composite Index closed at 22,723.21, a decline of 387.60 points, or approximately 1.7%—marking the largest single-session drop in about five and a half months.
Asian stocks experienced their most significant slump since 2022 on Friday, led by declines in Japanese markets. Recession fears dominated as weak U.S. manufacturing and labor market data exposed vulnerabilities in the world’s largest economy.
Heightened tensions in the Middle East and disappointing earnings from Amazon and Intel further eroded investor appetite for riskier assets.
European stocks continued their downward trend, extending losses from the previous session amid concerns that the U.S. Federal Reserve’s delayed interest rate cuts could harm the world’s largest economy.
In commodities, West Texas Intermediate Crude oil futures fell $0.59, or 0.77%, to $75.72 a barrel.
Gold futures rose by $24.10, or 0.97%, to $2,504.90 an ounce, while Silver futures gained $0.573, or 2.01%, to $29.050 an ounce.
