Oct 27 (Reuters) - Canada's main stock index was muted in choppy trading on Tuesday as gains in mining and tech stocks were countered by declining energy shares, while investors awaited crucial monetary policy decisions from central banks due later this week.
The S&P/TSX Composite Index was down 0.1% at 35,897.12 points as of 10:28 a.m. ET (1428 GMT).
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The materials sector was the biggest gainer, up 1.3% as copper prices rose and gold reversed declines from earlier in the day
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Information technology stocks were 0.2% higher, lifted by gains in data center infrastructure firm Celestica, though most other tech stocks declined
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Celestica topped the TSX with a 10% jump after beating third-quarter revenue and profit estimates
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Energy stocks lost 1.1% after oil prices turned negative, as markets balanced hopes that potential Middle East talks could ease supply disruptions against Houthi attacks on Saudi Arabia's infrastructure
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"Oil prices going higher is a big driver of the energy component of the stock market, but that doesn't mean it's good," said Matt Manara, executive vice president and portfolio manager at Avenue Investment Management
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Reuters reported, citing sources, that the US and Canada are working on a deal to ease US tariffs on Canadian steel as the two countries try to repair relations that soured after trade talks broke down in August
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"If they are able to ease tariffs and markets stay strong, that is good for capital markets, which translates into bank profits, which are 30% of the TSX," said Manara
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This week, attention will be on the US Federal Reserve's policy meeting, with the central bank widely expected to hold interest rates steady, according to CME Group's FedWatch tool
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The Bank of Canada meets on Wednesday, with markets pricing in a 78% chance of a 25-basis-point hike, according to data compiled by LSEG
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On Monday, financials and resources shares helped the TSX stage a rebound, with the latter supported by British Columbia's provincial election result, which raised production prospects for oil and gas companies
Reporting by Anand Gopal and Purvi Agarwal in Bengaluru
Source: Reuters