(RTTNews) - Canadian stocks will look to rebound from their biggest drubbing ever on Tuesday, and early signals are somewhat positive amid renewed hopes that US lawmakers can pass measures designed to bolster the financial system later in the week.

Stocks suffered historic losses on Monday after the House of Representatives voted down a bailout plan that would have allowed the government to purchase mortgage-backed assets from financial institutions.

The pace of the losses of Bay Street was simply staggering. The S&P/TSX Composite Index plunged 840 points to 11,285.07, its lowest closing level in two years.

Bay Street will look to take a cue from markets across the border on Wall Street, where futures moved sharply higher ahead of the opening bell. European shares rallied back from steep early losses, while Asian stocks weathered yesterday’s shock relatively well.

Canadian gross domestic product increased 0.7% in July after advancing 0.1% in June and retreating 0.1% in May, according to data released by Statistics Canada Tuesday morning. The energy sector, which has been trending down during the last four quarters, accounted for almost half of the July increase. Manufacturing and wholesaling industries also contributed significantly to the advance.

In corporate news, slumping Nortel Networks Corp. (NT.TO) introduced a new Ethernet Access solution to help service providers prevent bandwidth bottlenecks. This will allow for faster and more reliable delivery of data between high-speed core networks and individual user access points.

Elsewhere in the tech sector, Blackberry maker Research in Motion (RIM.TO) will attempt to get back on the winning track after a dreadful previous two sessions that saw its stock decline in value by more than 30 percent.

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Posted in Categories: Canada, Eurozone, Releases, Stocks, USA.

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