By Fergal Smith
(Reuters) -Canada’s main stock index ended lower on Monday as technology and industrial shares lost ground ahead of a key U.S. inflation report, but the decline was limited by gains for resource shares after China pledged to stimulate its economy.
The Toronto Stock Exchange’s S&P/TSX composite index ended down 66.38 points, or 0.3%, at 25,625.42, after touching a record high of 25,843.20.
“Considering the headwind from the U.S., we’re holding in quite well,” said Colin Cieszynski, chief market strategist at SIA Wealth Management. “We’re getting a boost from commodities.”
The TSX’s decline was less than for the major U.S. indices. Some investors worry that U.S. consumer price index data, due on Wednesday, could derail an expected Federal Reserve interest rate cut this month.
The Bank of Canada is expected to continue its easing campaign at a policy decision on Wednesday, with the majority of economists polled by Reuters forecasting a half-percentage-point rate cut.
The technology sector fell 0.8%, with e-commerce company Shopify Inc down 2.5%. Industrials lost 0.7%, while utilities ended 1.4% lower as bond yields climbed.
The materials sector, which includes fertilizer companies and metal mining shares, advanced 2.1%. Gold and copper prices rose as top metals consumer China said it would take more action to boost its lethargic economy.
Energy was up 0.4% as the price of oil rose 1.4% to $68.13 a barrel.
(Reporting by Fergal Smith in Toronto and Ragini Mathur in Bengaluru; Editing by Vijay Kishore and Richard Chang)