FX.co ★ TSX Futures Down on GDP Contraction

Futures tracking the S&P/TSX Composite Index slipped on Friday, following a record close for the benchmark in the previous session, as investors turned cautious ahead of Canada’s GDP release and in response to losses on Wall Street. Canada’s economy contracted at an annualized rate of 0.6% in the fourth quarter, missing expectations for flat growth and reinforcing concerns about the strength of the recovery.

Bank stocks were poised to open lower after a wave of major earnings reports produced mixed share price reactions in the prior session. In contrast, energy names were set for support, with oil prices climbing on persistent supply uncertainty, even as US–Iran nuclear talks were extended. Gold prices also advanced, underpinning gains in mining stocks.

In corporate news, Bombardier CEO Eric Martel said Thursday that India’s drive to modernize its aviation infrastructure could create significant long-term opportunities for the company’s business jet division. Separately, Fairfax has emerged as the leading contender to acquire a majority stake in Indian lender IDBI Bank.