Resource stocks could give the Toronto stock market early lift amid rising prices for oil and metals.
However, the tone for the trading session could be set by the first reading of how the American economy expanded during the fourth quarter.
The Canadian dollar traded above parity with the U.S. dollar, up 0.2 of a cent to 100.03 cents US. The loonie hasn’t closed above parity since the end of October, 2011.
U.S. futures were positive ahead of the release of the GDP data while investors took in an earnings report from automaker Ford that missed expectations.
Ford made US$13.4 billion in the fourth quarter, largely due to an accounting change. Without the gain, Ford earned $1.1 billion, or 20 cents per share, missing expectations by five cents. Its quarterly revenue rose six per cent to $34.6 billion and its shares fell about 4.6% in pre-market trading in New York.
The Dow Jones industrial average futures gained 19 points to 12,703, the Nasdaq futures slipped 13.03 points to 2,805.28 and the S&P 500 futures were ahead 1.7 points to 1,317.
Economists predict that fourth quarter GDP growth will strengthen to around three per cent from about two per cent in the third quarter. A recovery in the U.S., the world’s largest economy, is vital for global growth at a time when many European countries are expected to slide back into recession.
Attention was also focused on the resumption of talks to reach a deal on how Greece can avoid a catastrophic default on its debt. Greece and its bailout rescuers — other countries that use the euro and the International Monetary Fund — are asking private creditors to swap their Greek bonds for new ones with a lower value and interest rate.
The two sides have so far disagreed over what interest rate the new bonds should take. Some negotiators have said they hope to have a deal this weekend, in time for a European leaders’ meeting on Monday.
Oil prices ticked past the US$100 level with the March contract on the New York Mercantile Exchange ahead 51 cents to US$100.21 a barrel.
Metal prices also improved with the March copper contract on the Nymex ahead two cents to US$3.92.
Bullion prices declines after two days of sharp gains, down $2.60 to US$1,724.10 an ounce.
Research In Motion (TSX:RIM) will be in focus after Fairfax Financial Holdings (TSX:FFH) doubled its stake in the BlackBerry maker. A filing with the U.S. Securities and Exchange Commission shows Fairfax raised its stake to 5.12% of the company after Fairfax head Prem Watsa joined RIM’s board Jan. 22, the same day RIM shook up its management roles with its co-CEOs being replaced.
European markets were mixed with London’s FTSE 100 index down 0.34%, Frankfurt’s DAX gained 0.23% and the Paris CAC 40 slipped 0.47%.
Asian markets showed little momentum ahead of the weekend.
Japan’s Nikkei 225 index fell 0.1%, South Korea’s Kospi rose 0.4%, Hong Kong’s Hang Seng rose 0.3% and Australia’s S&P/ASX 200 gained 0.4%.
In other earnings news, Wood-based panels maker Norbord Inc. (TSX:NBD) posted a $9 million loss in the fourth quarter as the company continued to be affected by troubles in the U.S. housing market. Sales were $229 million, down from $240 million.