CANADA STOCKS-TSX to open lower after GDP, weak China factory data

Tue Sep 1, 2015 8:52am EDT
 
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(Updates economic data)

Sept 1 (Reuters) - Canada's main stock index looked set to open lower on Tuesday after data showed that the country's economy was in recession in the first half of the year and China's manufacturing sector shrank at its fastest pace in three years.

Canada's economy contracted by an annualized 0.5 percent in the second quarter, according to Statistics Canada data on Tuesday.

The data from China helped spur a sharp fall in oil prices, which is likely to weigh on the energy-heavy Canadian stock index.

September futures on the S&P TSX index were down 2.35 percent at 8:30 a.m. ET on Tuesday.

A sharp jump in energy stocks as crude oil prices soared was not enough to push Canada's main stock index into positive territory on Monday.

The index, which had been steadily declining since April, sank to its lowest level since 2013 last week on investor worries over China's economic growth.

Dow Jones Industrial Average e-mini futures were down 2.25 percent at 8:30 a.m. ET, while S&P 500 e-mini futures were down 2.26 percent and Nasdaq 100 e-mini futures were down 2.42 percent. (Morning News Call newsletter link.reuters.com/nex49s; The Day Ahead newsletter link.reuters.com/mex49s)

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