CANADA STOCKS-TSX dragged lower by U.S.-China trade tensions

May 17 (Reuters) - Canada’s main stock index fell on Friday, as Chinese media took a tough stance on the trade war between the United States and China, reviving fears of a global economic slowdown.

* At 9:42 a.m. ET (1342 GMT), the Toronto Stock Exchange’s S&P/TSX Composite index was down 36.94 points, or 0.22%, at 16,406.92.

* The trade war with the United States will only make China stronger and will never bring the country to its knees, the Communist Party’s People’s Daily wrote in a front page commentary.

* Eight of the index’s 11 major sectors were lower, led by the energy sector which fell 0.7%.

* Oil prices swung between losses and gains in the face of supply cuts and concern over further disruption to Middle East shipments.

* Global equities were also hit by a fresh bout of selling as U.S.-China trade tensions heightened while bets on a new pro-Brexit leader in Britain sent the pound sliding to its worst week in well over a year.

* The financials sector slipped 0.4% while the industrials rose 0.2%.

* Gains among industrials were powered by a 1% rise in shares of Air Canada on its bid to buy Canadian tour operator Transat AT which would boost its leisure travel business at a time when the company faces a potential turnaround in rival WestJet Airlines.

* On the TSX, 72 issues were higher, while 158 issues declined for a 2.19-to-1 ratio to the downside, with 13.19 million shares traded.

* The largest percentage gainer on the TSX were shares of Cae Inc, which jumped 6.1%.

* Northview Apartment REIT fell 2.9%, the most on the TSX.

* The most heavily traded shares by volume were Aurora Cannabis, Prometic Life Sciences Inc and Bombardier Inc.

* The TSX posted seven new 52-week highs and three new lows.

* Across all Canadian issues there were 17 new 52-week highs and seven new lows, with total volume of 23.19 million shares. (Reporting by Shreyashi Sanyal in Bengaluru; Editing by Shounak Dasgupta)