Source: The Canadian Press

North American markets appear set for a flat opening as investors await readings on economic output in Canada and the United States.

The reports on gross domestic product are likely to tell a somewhat different tale in the two countries, with indications that Canada is well into recovery from the recession while the U.S. languishes in a slow grind out of the depths.

Canada’s reading on May GDP is expected to show a small improvement with weak housing and wholesale trade offsetting strong manufacturing and retail sales.

But economic data over the past few months have shown nearly all sectors of the U.S. economy have weakened as unemployment remains high and government stimulus programs end.

In premarket trading, Dow Jones industrial average futures declined 35 points or 0.34%, Nasdaq futures were off 5.75 points or 0.31% and Standard & Poor’s 500 index futures fell 4.8 or 0.44%.

The Canadian dollar opened at 96.98 cents US, up 0.47 of a cent from Thursday’s close.

The S&P/TSX composite index closed 32.01 points higher on Thursday at 11,728.64 after a volatile trading day that saw big profit improvements reported by TSX heavyweights such as Suncor Energy Inc. (TSX:SU), Imperial Oil (TSX:IMO), Barrick Gold Corp. (TSX:ABX), Goldcorp Inc. (TSX:G), and Potash Corp. of Saskatchewan Inc. (TSX:POT).

European markets fell after reports that Spain’s top-notch credit rating is likely to be cut by Moody’s Investors Service. The potential downgrade comes as the country’s unemployment rate jumped to a 13-year high of 20.09% and the government continues to grapple with rising debt problems.

Spain’s IBEX 35 fell 1.1%. Britain’s FTSE 100 fell 0.7%, Germany’s DAX index dropped 0.6%, and France’s CAC-40 fell 0.6%. Japan’s Nikkei stock average fell 1.6%.