By Fergal Smith
TORONTO (Reuters) - Canada's main stock index edged down on Monday, pulling back from its highest level in more than 11 weeks, as lower oil prices weighed on energy shares and before release of domestic inflation data this week.
The Toronto Stock Exchange's S&P/TSX composite index ended down 189.70 points, or 0.9%, at 19,921.81, after on Friday posting its highest closing level since Aug. 25.
Wall Street's main indexes also lost ground as investors digested comments from U.S. Federal Reserve officials about the central bank's plans for interest rate hikes and looked for the next catalysts following last week's big stock market rally.
The Bank of Canada has also been raising interest rates. Canada's inflation report for October, due on Wednesday, could help guide expectations for further tightening.
"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," said Allan Small senior investment advisor at Allan Small Financial Group.
The Toronto market's energy group fell 1.4% as U.S. crude oil futures settled 3.5% lower at $85.87 a barrel, dragged down by a firmer U.S. dollar and as surging coronavirus cases in China dashed hopes of a swift reopening of its economy.
Technology declined 2.1%, while utilities ended nearly 2% lower. The sector was pressured by a 14% decline for the shares of Algonquin Power & Utilities Corp.
It was the stock's second straight day of sharp losses, after the company reported quarterly earnings on Friday that missed estimates.
(Reporting by Fergal Smith; Additional reporting by Johann M Cherian in Bengaluru; editing by Grant McCool)