CANADA STOCKS-TSX retreats from record high as investors await bank earnings

By Avinash P

Dec 1 (Reuters) - Canada's main stock index slipped on Monday, led by losses in technology shares, as investors paused after November's strong rally and looked ahead to a busy week of bank earnings.

At 10:04 a.m. ET, Toronto's S&P/TSX composite index .GSPTSE was down 0.31% at 31,284.51 points. The benchmark rose 0.6% to a record closing high on Friday, capping its seventh straight month of gains - a streak not seen since August 2021.

Looking ahead, U.S. Federal Reserve Chair Jerome Powell is set to speak later on Monday, and traders will monitor his comments for signals on the timing or likelihood of upcoming rate cuts. Odds of a rate cut by the Fed in December have surged in recent weeks.

Major Canadian banks are set to post earnings over the next few days, starting with Bank of Nova Scotia BNS.TO on Tuesday. Financial companies make up nearly a third of the weight on the TSX index.

"If bank earnings come in strong, that will certainly act as a tailwind for the TSX, the resource-heavy index is also very sensitive to interest rates," said Matt Skipp, president at SW8 Asset Management.

"With rates coming down and global demand for resources rising, Canada benefits as a market that is both resource-rich and rate-sensitive."

On the TSX, technology stocks .SPTTTK slid 3.2%, with blockchain farm operator Bitfarms BITF.TO falling 5.7% after bitcoin BTC= price fell.

Among other share moves, Barrick Mining's ABX.TO shares rose 2.6% after announcing it was exploring an initial public offering of a subsidiary that would hold its North American gold assets.

Canadian markets wrapped up a volatile November on a strong note as investors brushed aside fears of an AI bubble, as higher likelihood of a Fed rate cut aided risk appetite.

A rally in precious metals such as gold and silver also helped push the commodity-heavy index to record highs last week.