The Bank of Canada's monetary policy decision and U.S. economic data this week weighed on investors, dragging down Canada's main index on Monday. Materials stocks gained.
The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE), opens new tab, down 50.54 points, or 0.23%, to 21,501.81 at 10:24 a.m. ET (1524 GMT).
Weekly US labor market indicators, particularly nonfarm payrolls, are expected to inform Federal Reserve interest rate reduction this year.
"Unless data shows a convincing path, I don't see it (data) impacting the Fed's timeline," said BlueShore Financial investment advisor Graham Priest. Watch Fed Chair Jerome Powell's testimony to both chambers of Congress this week.
On Wednesday, BoC is expected to maintain 5% interest rates at home."Economists feel the slowdown in the Canadian economy is in line with what the central bank was anticipating," Priest said.
The TSX declined 1.2% led by healthcare stocks (.GSPTTHC). Cannabis stock Tilray Brands fell 3.8%, the most in healthcare. Utility shares (.GSPTTUT) fell 0.9%. Despite a broad sell-off, materials stocks, including precious and base metals miners and fertilizer businesses (.GSPTTMT), rose 1.2%.
Following rising gold prices, metal miners Torex Gold Resources (TXG.TO) and First Quantum Minerals (FM.TO) increased 3.8% and 3.2%, respectively. Copper rose on confidence about Chinese economic support, while gold held near a two-month high.
Bitcoin rose above $65,000, lifting Hut 8 and Bitfarms (BITF.TO) shares 2.1% and 3.8%.
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