CANADA STOCKS-TSX slips as hot US inflation data clouds Fed rate cut hopes

By Nikhil Sharma

Aug 14 (Reuters) - Canada's main stock index edged down on Thursday, led by declines in industrials and technology shares, as hotter-than-expected U.S. inflation data undermined interest rate cut hopes.

At 9:50 a.m. ET (1340 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 0.34% at 27,899.62 points. The move follows the index's record close in the previous session.

On the day, Toronto's industrials .GSPTTIN and the technology sub-indexes .SPTTTK led losses, falling more than 1% each.

Wall Street also declined, with the S&P 500 .SPX falling 0.1%, after the U.S. producer prices data increased more than expected in July amid a surge in the costs of services and goods, suggesting a broader pickup in inflation in the months ahead.

"Given how benign the CPI numbers were on Tuesday, this is a most unwelcome surprise to the upside and is likely to unwind some of the optimism of a "guaranteed" rate cut next month," Chris Zaccarelli, chief investment officer for Northlight Asset Management, said in a note.

Despite the data undercutting September rate cut expectations by the U.S. Federal Reserve, traders continued to price in a 25-basis-point cut next month, with odds standing at 92.5%, according to the CME Group's FedWatch tool.

Separately, the U.S. jobless claims fell last week amid low layoffs.

Heavyweight energy index .SPTTEN lost 0.5%. Oil markets braced for the upcoming U.S.-Russia summit on Friday amid U.S. President Donald Trump's warning of "severe consequences" for Moscow if it does not agree to end its war in Ukraine.

The healthcare .GSPTTHC, however, surged 1.6% after a minor fall in the previous session, with the sector heavyweight Bausch Health BHC.TO jumping 4.5%.

Among earnings-related moves, Bird Construction BDT.TO dropped 11.7% after its second-quarter profit fell short of Street expectations. The stock was the biggest loser on the main index.