CANADA STOCKS-TSX sinks to lowest since Feb 2014 on global growth worry

Fri Aug 21, 2015 11:53am EDT
 
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(Adds analyst Johnston's comments, market reaction, updates trading)

* TSX down 183.36 points, or 1.33 percent, to 13,553.64

* Nine of the TSX's 10 main groups fall

By Solarina Ho

TORONTO, Aug 21 (Reuters) - Canada's main stock index sank on Friday to its lowest in 1-1/2 years on persistently grim global sentiment following more disappointing data out of China.

Global equity markets plummeted toward their worst week this year while the beating in commodities continued as data out of China showed manufacturing in the country was slowing at the fastest pace since the financial crisis in 2009.

The commodities-heavy TSX took another drubbing, with energy stocks falling 1.4 percent and materials sliding 1.7 percent. The hefty financials group, which also reports quarterly results next week, fell 1.5 percent.

"We're really breaking some really key levels. It's a sign that we're in a very severe correction. It's being driven by a continued slowdown in the global production cycle, which is so important for the demand for commodities," said John Johnston, chief strategist at Davis-Rea, adding that emerging markets have been a risk for some time.

"Unless they start to stabilize and turn up, they could become a big problem. I'm starting to get worried they're going to drag the global economy into a recession."   Continued...