Sept 21 - Canada's main stock index was subdued on Monday, as a more than 3% dip in oil prices pressured energy stocks, while investors awaited remarks from the Bank of Canada governor for cues on future policy path.
The S&P/TSX Composite Index (.GSPTSE), was flat at 35,815.62 points by 10:15 a.m. ET, with 6 of the TSX's 10 main sectors in the red.
Oil prices slid towards the psychological threshold of $100 a barrel and to their lowest in 11 days as investors hoped for diplomatic progress on the Iran war at this week's UN meeting, and eyed a partial recovery in shipments from Saudi Arabia.
Iranian President Masoud Pezeshkian is expected to attend the United Nations General Assembly in New York this week, and US President Donald Trump has said he would be open to meeting him.
Heavyweight energy stocks (.SPTTEN), fell 2.1%, their lowest in two weeks.
Financials (.SPTTFS), gained 0.9%, while the information-technology index (.SPTTTK), rose 1.1%, helping limit losses on the TSX.
Meanwhile, miners First Majestic Silver (AG.TO), and Equinox Gold (EQX.TO), dropped 3.4% and 3%, respectively, tracking lower precious metal prices. The broader mining index (.GSPTTMT), fell 1.1%.
Market participants now await Bank of Canada Governor Tiff Macklem's speech later in the day for clues on the central bank's future policy path.
"The economy is reasonably fragile. We do not have a trade deal with the United States. The Bank of Canada has to tread very carefully by raising rates. More than likely they're probably going to hold, not necessarily raise," said Shiraz Ahmed, founder and CEO of Sartorial Wealth.
Investors will also be on the lookout for retail sales data due later this week for cues on consumer spending amid increasing inflationary fears.
Reporting by Darshan Kumar and Avinash P in Bengaluru; Editing by Diti Pujara
