(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)
Valeant Pharmaceuticals International Inc is buying rights to AstraZeneca Plc’s late-stage experimental psoriasis drug brodalumab after it was dropped by Amgen Inc in May.
Penn West Petroleum Ltd cut its 2015 capital budget for the third time this year, suspended its dividend and said it would lay off about 35 percent of its workforce as it copes with a slump in crude oil prices.
The Canadian province of Alberta, which has been hammered by falling crude prices, is forecasting a record budget deficit of C$5.9 billion ($4.49 billion) this year, a number that could increase to C$6.5 billion, Finance Minister Joe Ceci said on Monday.
COMMODITIES AT 8:30 a.m. ET
Gold futures : $1,139.1; +0.66 pct
US crude : $47.62; -3.21 pct
Brent crude : $52.25; -3.45 pct
LME 3-month copper : $5,083; -1.15 pct
ANALYST RESEARCH HIGHLIGHTS
Element Financial Corp : BMO raises target price to C$24 from C$23
National Bank of Canada : CIBC cuts target price to C$47 from C$48
Royal Bank of Canada : CIBC cuts target price to C$83 from C$84
U.S. ECONOMIC DATA DUE ON TUESDAY
0855 Redbook mm: Prior 0.3 pct
0855 Redbook yy: Prior 1.7 pct
0945 Markit Manufacturing PMI Final for Aug: Prior 52.9
1000 Construction Spending mm for Jul: Expected 0.6 pct; Prior 0.1 pct
1000 ISM Manufacturing PMI for Aug: Expected 52.6; Prior 52.7
1000 ISM Manufacturing Prices Paid for Aug: Expected 42.5; Prior 44.0
1000 ISM Manufacturing Employment Index for Aug: Expected 55.0; Prior 52.7
1000 ISM Manufacturing New Orders Index for Aug: Prior 56.5
1030 Texas Service Sector Outlook for Aug: Prior 7.9
1030 Dallas Fed Services Revenue for Aug: Prior 19.1
1330 Domestic car sales for Aug: Expected 5.70 mln; Prior 5.81 mln
1330 Domestic truck sales for Aug: Expected 8.05 mln; Prior 8.07 mln
1330 Total vehicle sales for Aug: Expected 17.30 mln; Prior 17.55 mln
1330 All car sales for Aug: Prior 7.62 mln
1330 All truck sales for Aug: Prior 9.85 mln
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$1= C$1.32 Reporting by Ayesha Sruti Ahmed in Bengaluru; Editing by Savio D’Souza and Don Sebastian
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