(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 1YMc1 were
down 2.25 percent at 8:30 a.m. ET, while S&P 500 e-mini futures
ESc1 were down 2.26 percent and Nasdaq 100 e-mini futures
NQc1 were down 2.42 percent.
TOP STORIES
Valeant Pharmaceuticals International Inc (NYSE:VRX) VRX.TO VRX.N
is buying rights to AstraZeneca Plc's AZN.L late-stage
experimental psoriasis drug brodalumab after it was dropped by
Amgen Inc AMGN.O in May.
Penn West Petroleum Ltd PWT.TO 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 COM/WRAP
Gold futures GCc2 : $1,139.1; +0.66 pct GOL/
US crude CLc1 : $47.62; -3.21 pct O/R
Brent crude LCOc1 : $52.25; -3.45 pct O/R
LME 3-month copper CMCU3 : $5,083; -1.15 pct MET/L
ANALYST RESEARCH HIGHLIGHTS RCH/CA
Element Financial Corp EFN.TO : BMO raises target price to
C$24 from C$23
National Bank of Canada NA.TO : CIBC cuts target price to
C$47 from C$48
Royal Bank of Canada RY.TO : 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
FOR CANADIAN MARKETS NEWS, CLICK ON CODES:
TSX market report .TO
Canadian dollar and bonds report CAD/ CA/
Reuters global stocks poll for Canada EQUITYPOLL1
EPOLL/CA
Canadian markets directory CANADA
($1= C$1.32)