(Adds analyst comment in paragraph three and four; updates stocks and sector details, prices)
*
Centerra shoots to TSX top on Turkey mine approval
*
National Bank of Canada down as Q2 earnings fall
*
Teck up on report of Glencore sweetening bid
*
Q1 GDP 3.1% vs 2.5% estimate
*
TSX eyes monthly declines
*
TSX down 0.7%
By Johann M Cherian
May 31 (Reuters) - Canada's main stock index extended losses on Wednesday, with the energy stocks leading the declines, while data showing an unexpected rebound in quarterly economic growth sparked fresh fears of the Bank of Canada resuming monetary tightening.
A Statscan report showed that the country's economy grew unexpectedly at an annualized rate of 3.1% in the first quarter, raising bets among market participants for a 25-basis point rate hike by the BoC next month.
"The run of sturdy data undoubtedly raises the odds that the Bank of Canada needs to go back to the well of rate hikes," Douglas Porter, chief economist at BMO Capital Markets wrote in a note.
"However, given the uncertain backdrop and the possibility that inflation took a big step down in May, the BoC could opt to remain patient for a bit longer."
At 10:08 a.m. ET (14:08 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 136.57 points, or 0.69%, at 19,603.13, weighed down by the energy sector after weak data from top oil importer China raised demand outlook fears for crude oil.
In a bright spot, Centerra Gold Inc surged 10.1%, its best day in over three years, after the bullion miner said it received an official approval for its Öksüt mine in Turkey.
The TSX is set for a monthly decline of nearly 5%, its worst month this year if losses hold, as a weak outlook for commodities, worries about inflation and a string of disappointing earnings from top lenders weighed on sentiment.
Among other movers, National Bank of Canada was off 1.2% as the lender posted lower second-quarter earnings after setting aside higher rainy-day funds, similar to its peers that reported results last week.
Teck Resources Ltd added 1.4% after a report stated Glencore Plc is working on a potential improvement to its bid for the Canadian miner. (Reporting by Johann M Cherian and Vansh Agarwal in Bengaluru; Editing by Shweta Agarwal)
