The Toronto stock market looked set to move lower on Friday morning as economic growth figures for the fourth quarter met expectations.

Statistics Canada said the economy expanded at an annualized rate of 1.8%. Gross domestic product grew 0.4%, which was also in line with expectations.

The Canadian dollar was lower despite the data, down 0.17 of a cent to 101.26 cents US.

The currency was pressured by commodity prices which weakened across the board amid the pressures of a rising American dollar.

The U.S. dollar had strengthened after Spain’s Prime Minister said Friday that his recession-ridden country will miss its deficit goal for this year, risking sanctions from the European Union.

Spain’s government deficit will reach 5.8% of its economic output this year, Prime Minister Mariano Rajoy said after an EU summit in Brussels. That is much higher than the 4.4% Madrid had promised the other states in the 27-nation bloc.

Oil prices were down with the April contract on the New York Mercantile Exchange falling 73 cents to US$108.11 a barrel.

A stronger greenback usually helps depress oil prices, which are denominated in dollars, as it makes oil more expensive for holders of other currencies.

Metal prices also softened with May copper down two cents to US$3.91 a pound.

Bullion declined $12.90 to US$1,709.30 an ounce.

U.S. futures were lower with the Dow Jones industrial futures down 28 points to 12,945, the Nasdaq futures declined seven points to 2,636.25 and the S&P 500 futures lost 3.9 points to 1,370.6.

Despite the anticipated negative start to the trading day, the Toronto market is set to end the week positive as positive economic data from China and the U.S. improved resource stocks while strong bank earnings lifted financials.

Still, with the market up well over six per cent year to date, traders wonder if a rally stretching back to October is looking a bit stretched.

Higher oil costs have also worried investors. Oil has shot up sharply from the US$98 level of the end of January, largely because of concerns of Iran’s nuclear program and worries about supply disruptions. Investors worry that a continued runup could damage a fragile economic recovery.

European bourses were also lower as London’s FTSE 100 index slipped 0.25%, Frankfurt’s DAX lost 0.29% and the Paris CAC 40 dipped 0.08%.

Earlier in Asia, Japan’s Nikkei 225 index rose 0.7% to its highest close in seven months.

Hong Kong’s Hang Seng added 0.8% and South Korea’s Kospi added 0.2%.

Mainland Chinese shares rose, with the benchmark Shanghai Composite Index adding 1.4%. The Shenzhen Composite Index climbed 2.1%.