Dec 2 (Reuters) - Canada's main stock index edged down on Tuesday as declines for resource shares outweighed Bank of Nova Scotia earnings beating expectations and optimism around expected U.S. interest rate cuts.
Toronto's main stock index (.GSPTSE), ended down 52.50 points, or 0.2%, at 31,049.28, extending its pullback from a record closing high on Friday.
"I think that a correction was required and is healthy and may not be complete," said Joseph Abramson, co-chief investment officer at Northland Wealth Management.
"The real point is we remain constructive on risk assets. Growth remains positive, liquidity is being added and there might be a substantial amount of liquidity added."
The Bank of Canada has signaled that its easing campaign is on hold but the Federal Reserve has left the door open to additional interest rate cuts. Investors expect about 90 basis points of easing from the U.S. central bank by the end of next year.
"Within that world, the U.S. dollar goes down which could pressure the Canadian dollar up, and gold would do well as well as some other commodities," said Abramson.
Resource shares account for 34% of the Toronto market's weighting.
The materials group (.GSPTTMT), which includes metal mining shares, fell 1.8% on Tuesday as gold and copper prices declined.
Oil prices also fell, settling 1.15% lower at $58.64 a barrel, which weighed on energy (.SPTTEN). The sector was down 1.6%.
Financials (.SPTTFS), were a bright spot, rising 0.7%, as Bank of Nova Scotia (BNS.TO), kicked off bank earnings season on a positive note.
Shares of Scotiabank were up 2.8%, notching a record high. Laurentian Bank (LB.TO), shares jumped 18.4% after Fairstone Bank said it would buy the lender.
Technology added 0.3%, with e-commerce company Shopify Inc (SHOP.TO), up 4.9% after the company said merchants achieved record sales over the Black Friday to Cyber Monday weekend, jumping 27% from last year.
Reporting by Fergal Smith in Toronto and Avinash P in Bengaluru; Editing by Sahal Muhammed and Deepa Babington
