By Johann M Cherian
(Reuters) - Canada's main stock index on Monday tracked losses in U.S. markets after hawkish comments from a Federal Reserve official tempered hopes of a less aggressive monetary policy in the world's largest economy.
At 1056 ET (0249 GMT), the Toronto Stock Exchange's S&P/TSX composite index fell 0.2%, after clocking an 11-week closing high on Friday.
"The market does not like the uncertainty of the overall backdrop of a global slowdown," said Allan Small senior investment advisor at Allan Small Financial Group
"It is not until you remove that uncertainty from the market that the market can rise."
The information technology sector was down 1.4% while the healthcare sector fell 2.2%.
Federal Reserve Governor Christopher Waller said on Sunday that the Fed may consider slowing the pace of rate increases at its next meeting but that should not be viewed as though the bank was "softening" its commitment to lower inflation.
Meanwhile, investors were looking forward to monthly and annual inflation data this week for cues on Bank of Canada's monetary policy path.
As per economists polled by Reuters, consumer price index (CPI) reading for October, due on Wednesday, is expected to rise to 0.7% while the annual CPI is expected to remain unchanged from September's 6.9%.
"I think everyone will be looking out for the inflation data which would obviously give us a direction as to what Bank of Canada would do in terms of monetary policy," Small added.
Traders are seeing a 64.2% chance of a 25 basis point increase in rates at the BoC's December meeting. [IRPR]
BoC Governor Tiff Macklem reiterated that inflation is too high and challenges remain as the central bank works to lower it. Macklem added that lower-income Canadians will be disproportionately affected by the slowdown in economic activity that is needed to ease inflationary pressures.
(Reporting by Johann M Cherian in Bengaluru; Editing by Vinay Dwivedi)