North American stock index futures suggested that major indexes will open lower when trading begins on Friday morning. Futures for the Dow Jones industrial average fell 81 points, to 12,743, about an hour before markets open. Futures for the broader S&P 500 fell 8 points, to 1384.
In Europe, the U.K.'s FTSE 100 and Germany's DAX index fell 1.3 per cent each in afternoon trading. In Asia, Japan's Nikkei 225 fell 2.1 per cent.
Crude oil broke the $125 (U.S.) a barrel mark early on Friday in electronic trading, before settling back. That's yet another record in a wild run that is leaving investors worried about the potential impact on inflation, consumer spending and corporate profits.
American International Group Inc. shares fell 8.3 per cent in premarket trading, after the company reported a $7.8-billion first-quarter loss after markets closed on Thursday. The financial firm also said it needs to raise $12.5-billion in capital.
The U.S. trade deficit narrowed more than expected in March, thanks to a drop in imports that coincides with a slowing economy. The deficit shrank to $58.2-billion, from $61.7-billion in February.
In Canada, the economy continues to generate jobs, even as many economists see slower U.S. economic growth spilling over the border. Statistics Canada reported that the economy produced 19,200 jobs in April, more than expected and ahead of the jobs growth in the previous month. Manufacturing was weak, but was offset by strong growth in construction.
“While the latest climb in Canadian employment sports the odd blemish – a higher jobless rate, weakness in private sector jobs – the main point is that job growth continues to churn ahead even in the face of a U.S. recessionette,” said Douglas Porter, deputy chief economist at BMO Nesbitt Burns, in a note to clients. “The Canadian results are consistent with slower growth, but are still a long, long way from anything close to a serious downturn."
