(Reuters) - Shares of energy companies pushed Canada’s main stock index lower on Monday, ahead of this week’s U.S. Federal Reserve meeting where investors widely expect an interest rate cut.
The Fed is expected to lower borrowing costs this week for the first time since the depths of the financial crisis, by at least 25 basis points, to counter the impact of a protracted U.S.-China trade war.
The energy sector dropped 1.1% as shares of Vermilion Energy Inc tumbled 5.6% after reporting lower production in the second quarter.
The materials sector, which includes precious and base metals miners and fertilizer companies, reversed earlier gains to trade 0.4% lower.
At 10:20 a.m. ET (14:20 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was down 39.34 points, or 0.24%, at 16,491.7.
CannTrust Holdings Inc fell 6.6%, the most on the TSX.
Thomson Reuters Corp, the parent company of Reuters that holds a 45% stake in Refinitiv, fell 1.9%. London Stock Exchange said it was in talks to buy financial data firm Refinitiv, in a deal worth $27 billion including debt.
The largest percentage gainer on the TSX was Bausch Health Companies Inc, which jumped 2.8% after the company said it would pay down an additional $100 million of its senior secured term loans this week, using cash flow from operations.
Gold miner Kirkland Lake Gold, which rose 2.7%, was the second biggest gainer on the main index.
On the TSX, 90 issues were higher, while 141 issues declined for a 1.57-to-1 ratio to the downside, with 28.45 million shares traded.
The most heavily traded shares by volume were Aurora Cannabis, Bombardier Inc and Crescent Point Energy Corp.
The TSX posted seven new 52-week highs and five new lows.
Across all Canadian issues there were 29 new 52-week highs and 17 new lows, with total volume of 43.67 million shares.
Reporting by Amy Caren Daniel in Bengaluru; Editing by Shailesh Kuber
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