Canada's resource-heavy main stock index looked set to open higher, supported by a rebound in oil and gold prices.
However, weak economic data across the globe and rating cuts on major global banks might restrict gains.
The S&P/TSX Composite Index plummeted 351.02 points, or 3%, to end Thursday at 11,408.32. Canada stock futures traded up 0.2%.
Canadian Pacific Railway said it signed a multi-year deal with U.S. Silica Holdings Inc to transport drilling sand from the U.S. company's mine in Sparta, Wisconsin.
Other stocks to watch this morning included Theratechnologies Inc., who said its European partner Ferrer Internacional SA is withdrawing the marketing application for tesamorelin, a drug to reduce excess abdominal fat in HIV-infected patients, after a health committee raised safety concerns.
Fibrek Inc. said a Quebec court granted it an order to hold a shareholders' meeting for voting on the company's proposed takeover by Resolute Forest Products Inc.
Indian energy major Reliance Industries and its partners BP and Niko Resources plan to spend $4 billion to develop satellite gas fields off India's east coast, the Economic Times reported, citing company officials and government sources.
On matters economic, Statistics Canada says annual inflation tumbled to 1.2% last month, the lowest the consumer price index reading in almost two years.
ON BAYSTREET
The TSX Venture Exchange collapsed 38.17 points Thursday to 1,216.40. The Nasdaq Canada index slid 14.70 points to 362.59
The Canadian dollar was up 0.08 of a cent this morning to 97.23 cents U.S.
ON WALLSTREET
U.S. stocks were headed for a mixed open Friday, a day after plunging on fears of slow global growth ahead of Moody's downgrade of several major banks
Futures for the Dow Industrials recovered 45 points, or 0.4%, to 12,547, about 30 minutes before the opening bell, while futures for the S&P 500 moved ahead 3.8 points, or 0.3%, to 1,322.10. Futures for the tech-rich Nasdaq faded 1.75 points to 2,550.
Investors may be feeling a little relief to get Moody's bank downgrades out of the way but worries about Europe's debt crisis persist.
The downgrades included five major U.S. banks -- Citigroup, Morgan Stanley, Goldman Sachs, Bank of America and JPMorgan Chase
Meanwhile, worries about Spain persist after an independent audit, released Thursday, found that Spanish banks need up to €62 billion to restore stability to the country's financial sector.
And Germany, the healthiest and largest euro-zone economy, may start to draw some attention. The German Ifo business confidence index fell to its lowest level in more than two years -- worse than expected.
European stocks slid in morning trading. Britain's FTSE 100 lost 0.9%, as did the DAX in Germany, while France's CAC 40 fell 0.6%.
Most of the major European banks that were downgraded, including Deutsche Bank, Barclays and BNP Paribas, were all up less than 1% in their home markets Friday.
Asian markets ended in the red. The Hang Seng in Hong Kong dropped 1.4% and Japan's Nikkei edged lower 0.3%. The Shanghai Composite was closed for a holiday.
Oil for August delivery rose 42 cents to $78.62 U.S. a barrel.
Gold futures for August delivery rose $4.50 to $1,570 U.S. an ounce.
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