The chances for a positive trading day have been significantly dampened by a report on U.S. GDP. The U.S. Commerce department is reporting that the U.S. economy rose a mere 1.6% in the first quarter, much less that analyst expectations of 2.3% annual rate during the first quarter.

The American economy is still growing, but it’s far behind the 3.2% growth rate which economists say is required to turnaround the struggling labor market. Since the beginning of 2001, American employers have cut more than 2 million jobs. Hope among economists lies in the fact that hostilities in Iraq are over, cutting down on the uncertainty inspired by war. Federal Reserve officials expect the American economy to pick up in the second half of the year.

At about 09:45 ET, investors will see if consumers agree. That’s when the University of Michigan survey of consumer sentiment is due out.

Here in Canada, Toronto is still reeling from the WHO travel advisory. The organization has refused to reverse its decision despite intense lobbying from Canadian politicians and federal health department officials. The situation isn’t being helped Canadian businesspeople either. Placer Dome executives are not coming to Toronto for the Vancouver-based gold miner’s annual meeting next week. The Canadian Cable Television Association has cancelled a convention scheduled to be held in Toronto next week.

Meanwhile, the futures markets are down slightly. So are the European bourses. London’s FTSE 100 stock index is down 12.20 points, or 0.31%, to 3886.80. Frankfurt’s Xetra DAX index has fallen 27.64 points, or 1%, to 2863.98 at midday. Paris’s CAC 40 index has slid 0.1%.

In Asia, Friday trading was also negative. Japan’s Nikkei average fell 155.07 points to 7,699.50 — its lowest close since Nov. 16, 1982. This followed disappointing outlooks from Sony and NEC.

The Hong Kong Hang Seng index slipped 33.10 points to 8,409.01, its worst level since Oct. 8, 1998.