Sept 27 (Reuters) - Canada's main stock index was flat on Friday as gains in consumer and energy shares were countered by losses in mining stocks, while investors assessed domestic GDP and the U.S. data to gauge monetary policy outlook in both countries.
At 11:41 a.m. ET (15:41 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 5.63 points, or 0.02%, at 24,028.2. The TSX was set to log weekly gains, having closed at record highs thrice this week.
The U.S. personal consumption expenditure index grew softer-than-expected 2.2% in August on an annual basis, building expectations of another outsized interest rate cut by the Federal Reserve.
Traders see another cut at the U.S. central bank's November policy meeting, with odds of a 50-basis-point reduction at 51.3%.
Canada's July gross domestic product grew 0.2%, faster than analysts' expectations. However, preliminary data for August showed GDP was essentially unchanged, indicating the economy was still weak.
The Bank of Canada has delivered three rate cuts this year and signaled larger reductions if the economy needs a boost.
"It looks like (Canada's) inflation could drop below 2% in next month's report," said Douglas Porter, chief economist at BMO Capital Markets.
"I think the chances of the Bank (of Canada) cutting (rates) by 50 basis points seem to be rising."
The potential for further policy easing by BoC and Fed weighed on bond yields in both countries. Canada's 10-year benchmark yield fell 6 basis points.
In Toronto, the heavyweight energy sector rose 1.3% as oil prices were steady on Friday, whereas Canada's materials sector slipped 1.6% as it tracked lower gold and copper prices.
The consumer discretionary sector stood out with 1.1% gains, led a 3% rise in shares of auto parts supplier Magna International.
Blackberry's shares declined 6.6% after its second-quarter results failed to impress investors.
Reporting by Nikhil Sharma in Bengaluru; Editing by Leroy Leo
Source: Reuters