Markets in Toronto fell more than 2% on Tuesday as the latest disappointing economic data from China spurred another round of selling in global markets and sent commodity prices lower.
The S&P/TSX composite index greeted midday Tuesday down 319.36 points, or 2.3%, at 13,539.76.
The Canadian dollar slid 0.21 cents by noon to 75.89 cents U.S.
The most influential decliners on the index included Royal Bank of Canada, which sank 2.8% to $71.26, and Toronto-Dominion Bank, which gave up 2.6% to $51.12.
Financial shares, which make up roughly a third of the index's weight, fell drastically.
Canadian Natural Resources lost 4.1% to $28.44, while Encana stumbled 5.8% to $9.26.
On the economic beat, Statistics Canada reported that, after falling for five consecutive months, real gross domestic product rose 0.5% in June. However, there was a second-quarter decline of 0.1% following a 0.2% decrease in the first quarter, technically putting Canada into a recession.
Moreover, the province of Alberta, which has been hammered by falling crude prices, is forecasting a record budget deficit of $5.9 billion this year, a number that could increase to $6.5 billion, Finance Minister Joe Ceci said on Monday.
ON BAYSTREET
The TSX Venture Exchange faded 7.43 points to reach noon at 551.73.
All but one of the 14 TSX subgroups were off over lunch hour, as metals and mining took it on the chin 6.7%, global base metals stooped 5.9%, and energy weakened 4.3%.
Only consumer staples held out against the negative tide, and only 0.04% at that.
ON WALLSTREET
U.S. stocks fell nearly 2% or more on Tuesday, the first day of trade for September, as weak Chinese data pressured global markets.
The Dow Jones industrial average stumbled 350.29 points, or 2.1%, to 16,177.74, with Exxon Mobil the greatest decliner.
The S&P 500 toppled 37.57 points, or 1.9%, to 1,934.61, with energy the greatest decliner.
The NASDAQ index hurtled lower 70.69 points, or 1.5%, to 4,705.82,
Reporting before the bell, Dollar Tree earned an adjusted 67 cents U.S. per share for its latest quarter, beating estimates by five cents.
However, revenue and a same store sales increase of 2.7% were both below analyst estimates.
In U.S. economic news, the August ISM manufacturing index fell to 51.1 from 52.7 the prior month for its weakest read in over two years, according to Reuters.
Construction spending increased 0.7% in July.
Domestic auto sales are released throughout the day
Two sets of key Chinese data disappointed traders on Tuesday. The official manufacturing purchasing managers' index (PMI) edged down to 49.7 in August from 50 in July, while the final Caixin/Markit manufacturing PMI came in at 47.3 in August, the lowest reading since March 2009.
Even more worrying, China's services sector, which has been one of the lone bright spots in the sputtering economy, also showed signs of cooling, a similar business survey said.
Prices for 10-year U.S. Treasuries gained, lowering yields to 2.18% from Monday’s 2.21%. Treasury prices and yields move in opposite directions.
Oil prices dropped $3.86 a barrel to $45.34 U.S.
Gold prices gained $5.80 to $1,138.30 U.S. an ounce.
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