Canadian stocks may extend losses Friday morning as commodities prices were struggling to sustain gains. Also, the just released GDP data from the U.S., the country's largest trading partner, may dent sentiment. Traders were also speculating that the G20 summit might fail to agree on ways to tackle the euro zone crisis.
However, value buying at lower levels may support stocks during the day.
Meanwhile, stocks in Europe and Asia fell ahead of the G20 meeting in Toronto. Falling commodities prices dragged mining stocks, while shares of BP plc fell around 6% as the first tropical storm of the Atlantic hurricane season is likely to head into the Gulf of Mexico where BP is trying to clean up the worst U.S. oil spill.
On Thursday, the S&P/TSX Composite Index surrendered 137.32 points or 1.16% to 11,670.18, levels near where it started the calendar year 2010.
Crude for August delivery edged up $0.39 to $76.90 a barrel, amid cautious trade.
The price of gold rose $6.7 to $1,252.6 an ounce amid a weak euro, which fell on renewed worries over the euro zone debt situation. The euro slipped after the cost of protecting Greek government debt against default rose to a record high Friday.
In corporate news, blackberry maker Research In Motion reported higher first quarter net income of $ 1.38 a share, compared to $1.12 a share in the year ago period. The company, which exported 11.2 million handsets, said it will repurchase up to 31 million shares over the next 12 months. The company guided that it's earnings will be $1.33 to $1.40 per share in this quarter.
Gold mining companies, Apollo Gold and Linear Gold said that their shareholders approved the business combination of the two companies to form Brigus Gold Corp. The new company will have approximately 129 million common shares and 176 million fully diluted shares outstanding.
Silver and gold miner Genco Resources said James Anderson, the largest single shareholder of the company, will be the acting chief executive with immediate effect.
Diamond miner Harry Winston Diamond said it closed a senior secured revolving credit facility with Standard Chartered Bank for $100.0 million.
Office systems provider Inscape turned to profit in fourth-quarter, reporting net income of C$0.02 per share, compared with a net loss of C$0.07 per share in the prior year period.
In economic news, Statistics Canada said non-farm payroll employment rose for a third straight month, adding 35,600 in April and taking the total gains since August 2009 to 166,900
From the U.S., the Commerce Department said that GDP increased at an annual rate of 2.7% in the first quarter compared to the 3.0% growth that was reported last month. The downward revision came as a surprise to economists, who were expecting the pace of GDP growth to be unrevised.