TSX flat as US rate-cut hopes counter losses in resources
TSX muted
Stella-Jones downgraded to sector perform; shares fall
US CPI due on Thursday
Updated at 10:28 a.m. ET/ 1428 GMT
By Nikhil Sharma
July 8 (Reuters) -Canada's main stock index was subdued on Monday as declines in resources shares were countered by rate-cutoptimism ahead of U.S. inflation data and Congressional testimony from FederalReserve Chair Jerome Powell this week.
At 10:28 a.m. ET (1428 GMT), the S&P/TSX composite index .GSPTSE was up 1.33 points, or 0.01%, at 22,060.36.
The materials sector .GSPTTMT fell 0.6% as gold prices declined on profit-booking after bullion crossed a one-month high in the previous session.GOL/
Lower oil prices weighed on the energy sector .SPTTEN, which dipped0.2% as hopes for ceasefire in Gaza eased supply disruption worries. O/R
The heavy-weight financial .SPTTFS and consumer discretionary .GSPTTCD sectorswere among the best performers, rising 0.3% and 1% respectively.
Wall Street indexes also rose on Monday, with S&P 500 .SPX and Nasdaq .IXIC hitting intraday record highs..N
U.S. jobs data on Friday showedjob growth was moderating, firming bets of an interest-ratecut by the Fed in September.
Markets will closely assess Powell's comments during his semi-annual testimony, alongside the U.S. Consumer Price Index (CPI) reading, expected later this week.
"(The Fed) rather make a mistake on holding rates higher for longer and tipping the economy into somewhat of a recession versus cutting too early and having inflation kind of pick up on them again", said Denis Taillefer, senior portfolio manager at Caldwell Investment Management.
Another earnings season is set to commence, with big U.S. banks scheduled to report their quarterly earnings on Friday.
After the Bank of Canada trimmed rateslast month, market participants are now pricing in a 61.5% chance of another cut atits next meeting on July 24. 0#BOCWATCH
Among individual stocks, pressure-treated wood product firm Stella-Jones' SJ.TO shares declined 2% after RBC cut its rating to'sector perform' from 'outperform'.
Reporting by Nikhil Sharma in Bengaluru; Editing by Shreya Biswas
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