Dec 5 (Reuters) - Canada's main stock index dropped on
Monday, as elevated government bond yields dented rate-sensitive
technology shares, while investor focus shifted to the Bank of
Canada's interest rate meeting due later this week.
At 10:42 a.m. ET (1542 GMT), the Toronto Stock Exchange's
S&P/TSX composite index was down 100.71 points, or
0.49%, at 20,384.95.
Technology stocks fell 1.1%, with BlackBerry
leading losses with a drop of more than 5%.
The Bank of Canada on Wednesday will be one of the first
major economies to announce its rate-hike decision with the U.S.
Federal Reserve and the European Central Bank set to follow next
Traders are pricing in a 69.1% chance of a dialed-down
25-bps hike to 4% on Wednesday, after the central bank had
surprised markets with a 50-bps increase last month.
"I am more of the belief now that this might be the last of
its hike," said Bryden Teich, portfolio manager at Avenue
"Directionally, we are getting closer to an end for
where they intend to take the overnight rate."
Materials lost 0.8% as gold miners dropped after
bullion pulled back from a five-month high on Monday.
Prominent cannabis companies Canopy Growth Corp
and Tilray Brands surged up to 6%, boosting the
broader healthcare by 3.7%.
Shares of cannabis stocks jumped as analysts expect a
positive update on pivotal U.S. banking bill that could provide
further legitimacy to the sector.
Meanwhile, the value of Canadian building permits fell
by 1.4% in October from prior month, as per Statistics Canada
Among individual stocks, AltaGas gained 5.7% after
the energy company reported a higher full-year outlook.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Krishna
Chandra Eluri and Sherry Jacob-Phillips)