April 21 (Reuters) - Canada’s main stock index dipped on Tuesday as uncertainty over U.S.–Iran peace talks ahead of the ceasefire deadline kept investors cautious, with miners being the biggest drag on the index. At 10:40 a.m. ET, the Toronto Stock Exchange's S&P/TSX Composite Index (.GSPTSE), was down 0.5% at 34,176.89 points.
President Donald Trump said on Tuesday that he did not want to extend a rapidly expiring ceasefire in the U.S.-Israeli war on Iran and that the U.S. military was "raring to go" if negotiations were not successful.
The materials subindex (.GSPTTMT), which includes Canadian metal miners, led the losses, dropping 2.2% as gold and silver fell more than 0.8% and 1.4%, respectively.
Miners including NovaGold Resources (NG.TO), and Equinox Gold corp (EQX.TO), were among the top losers.
Six out of 11 TSX sectors were trading in the red.
On the other hand, the tech subindex (.SPTTTK), rose 0.8%, tracking gains on Wall Street as renewed optimism around artificial intelligence and strong corporate earnings lifted sentiment.
TSX’s energy subindex (.SPTTEN), rose 0.9%, tracking gains in oil futures as shipping traffic through the Strait of Hormuz remained largely halted.
Focus next week will be on a Bank of Canada policy meeting in which the central bank is expected to hold rates steady at 2.25%. Data this week showed Canada's annual inflation rate rose less than analysts expected in March, further weakening the case of more rate hikes.
"With a weak beginning of the year, a negative output gap and a soft labor market, we see arguments against potential hikes," said Bank of America economist Carlos Capistran.
Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Sahal Muhammed
