CANADA STOCKS-TSX posts biggest decline in 10 weeks as Fed and BoC remain sidelined

By Fergal Smith

July 30 (Reuters) - Canada's main stock index fell on Wednesday, with the materials sector leading broad-based declines as metal prices fell and the Federal Reserve stopped short of signaling a move to interest rate cuts.

The S&P/TSX composite index .GSPTSE ended down 169.92 points, or 0.6%, at 27,369.96., after posting a record closing high on Tuesday. It was the index's biggest decline since May 21.

"Quite the action-packed day," said Elvis Picardo, a portfolio manager at Luft Financial, iA Private Wealth.

"The Fed announcement had quite an impact on U.S. markets because there was some expectation about a potential timetable for rate cuts which wasn't forthcoming."

The Federal Reserve held interest rates steady on Wednesday in a split decision that gave little indication of when borrowing costs might be lowered and drew dissents from two of the U.S. central bank's governors.

U.S. economic growth rebounded more than expected in the second quarter, but that measurement grossly overstated the economy's health as declining imports accounted for the bulk of the improvement and domestic demand increased at its slowest pace in 2-1/2 years.

The BoC also remained on the sidelines. It left its benchmark interest rate at 2.75% for the third straight policy decision and said that the risk of a severe and escalating global trade war had diminished.

The materials group .GSPTTMT, which includes metal mining shares, dropped 2.1% as gold XAU= and copper HGc1 prices fell, with the latter down nearly 20%.

Heavily weighted financials .SPTTFS were down 0.6% and technology SPTTTK ended 0.5% lower. Eight of the index's 10 major sectors lost ground.

Capital Power Corp CPX.TO was among the biggest decliners. Its shares were down 6.9%% after the company reported a quarterly loss.