June 19 (Reuters) - Canada's main stock index was subdued on Wednesday, as investors adopted a cautious approach ahead of the Federal Reserve's policy statement that could open the door to future interest rate cuts.
* Still, when the Fed concludes its latest two-day policy meeting on Wednesday, it is expected to leave interest rates on hold but flag whether it plans to cut rates later this year as investors expect. Expectations that central banks around the world would turn more accommodative to impede slowing global growth spurred a near 3% gain so far this month. This follows the main index posting its worst monthly performance this year in May due to escalating U.S.-China trade tensions.
* However, data showed that Canada's annual inflation rate unexpectedly rose to a seven-month high in May, prompting analysts to predict the Bank of Canada would not be cutting interest rates anytime soon. Also weighing on the sentiment, the energy sector .SPTTEN dropped 0.7% as U.S. crude CLc1 prices were down 1.1% per barrel, while Brent crude LCOc1 lost 1.2%. O/R
* At 9:48 a.m. ET (13:48 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 2.56 points, or 0.02%, at 16,505.91.
* Interest rate sensitive financial stocks .SPTTFS rose 0.5%, the most among the four major sectors trading higher.
* The materials sector .GSPTTMT , which includes precious and base metals miners and fertilizer companies, lost 0.8%. GOL/ MET/L
* On the TSX, 81 issues were higher, while 155 issues declined for a 1.91-to-1 ratio to the downside, with traded volume touching 18.68 million shares.
* The largest percentage gainer on the TSX was CannTrust Holdings Inc TRST.TO , which jumped 5.6% after the medical cannabis company formed a joint venture with Elk Grove Farming Company LLC and started operations in California, United States.
* Canadian Tire Corp CTCa.TO , which rose 1.7%, was also among the top percentage gainers.
* Gran Tierra Energy GTE.TO fell 11.6%, the most on the TSX, after the company announced an operations update.
* The second biggest decliner was InterRent Real Estate Investment Trust IIP_u.TO , down 2.8% after the company announced $175 million equity offering to fund property acquisitions in the city of Montreal.
* The most heavily traded shares by volume were Bombardier Inc BBDb.TO , Champion Iron Limited CIA.TO and Stornoway Diamond Corp SWY.TO .
* The TSX posted three new 52-week highs and one new low.
* Across all Canadian issues, there were 15 new 52-week highs and seven new lows, with total volumes touching 31.44 million shares.