* TSX down 32.08 points, or 0.2 percent, at 13,292.86
* Seven sectors down, materials the main drag (Adds details)
TORONTO, July 14 (Reuters) - Toronto’s main stock market index was lower late on Thursday morning, erasing early gains, after U.S. Federal Reserve Chairman Ben Bernanke said he was not yet prepared to take new action to ease monetary policy.
Early on Thursday the index extended gains from the day before as Bernanke reiterated his Wednesday remarks that the Fed could put more monetary stimulus into play if the economic recovery stumbles.
But his comments on not being ready to pull the trigger yet pulled the market back as prices for key commodities such as oil and copper reversed strong advances made on better-than-expected U.S. retail sales data.
At 11:40 a.m. (1540 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 32.08 points, or 0.2 percent, at 13,292.86.
Seven of 10 main index sectors were lower, dragged down mainly by the heavyweight materials group, which fell 0.6 percent.
Gold prices were off the record high they hit earlier in the session after an eight-day winning streak, and Toronto’s gold-mining issues turned lower. [ID:nLDE76D01W] [GOL/] [MKTS/GLOB]
Barrick Gold (ABX.TO) fell 0.9 percent to C$46.19, while diversified miner Teck Resources TCKb.TO lost 1 percent to C$49.25.
Some blue-chip resource issues managed to eke out gains despite the soured sentiment. Potash Corp POT.TO rose 0.66 percent to C$56.19, while Suncor Energy (SU.TO) rose 0.45 percent to C$38.24.
Investors were also on edge after Moody’s put the United States’ Aaa credit rating under review late on Wednesday, while monitoring developments in the impasse between the White House and congressional Republicans over raising the statutory borrowing limit.
“We’re still very worried about whether, politically, folks will get their ducks in line or not,” said Paul Taylor, chief investment officer at BMO Harris Investment Management Inc. “But we saw the S&P warning awhile back and so one more rating agency piling on is not net new news.”
($1=$0.96 Canadian) (Reporting by Ka Yan Ng; editing by Peter Galloway)