Sept 18 (Reuters) - Canada's main stock index fell on Wednesday due to losses in energy shares, even as markets braced for the U.S. Federal Reserve's monetary policy decision due later in the day.
The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE), was down 105.02 points, or 0.44%, at 23,572.68.
At the upcoming U.S. Fed's policy decision at 1400 ET, investors expect the Fed to announce its first interest-rate cut in more than four years. They will look for clues on the central bank's future rate trajectory.
The policy rates are at a more than two-decade high and traders are betting on a 59% chance for a 50-basis point reduction and a 41% chance of 25-basis point cut.
Wall Street's main indexes were flat on Wednesday ahead of the Fed policy decision, providing cues to stocks in Toronto.
"Markets wouldn't be completely shocked by a 50 basis points move because the overall macro data has been all looking up," Shailesh Kshatriya, director, investment strategies at Russell Investments Canada.
Lower U.S. interest rates tend to benefit zero-yield gold and other dollar-denominated commodities, and that could boost Canada's resource-heavy stock market.
The TSX has risen 12.6% this year following three rate cuts by the Bank of Canada as well as hopes of Fed's policy easing.
Energy companies (.SPTTEN), led losses among sectors with a 1.1% fall tracking oil prices, while TSX's economically sensitive industrials sector (.GSPTTIN), declined 0.7%. Among individual stocks, shares of Rogers Communications (RCIb.TO), fell 2.6% after the Canadian telecommunication firm said it would buy Bell's stake in Maple Leaf Sports & Entertainment for C$4.7 billion ($3.46 billion).
In oil markets, the West Texas Intermediate crude futures fell 0.18%, while Brent crude fell 0.24% . Gold prices were up 0.01%.
Reporting by Nikhil Sharma in Bengaluru; Editing by Leroy Leo
