CANADA STOCKS-TSX muted as investors brace for important central bank decisions

By Avinash P Dec 8 (Reuters) - Canada’s main stock index was subdued on Monday, with technology shares leading gains, ahead of crucial monetary policy decisions in the U.S. and Canada later this week. Toronto’s S&P/TSX Composite Index (.GSPTSE) was flat at 31,296.10 points by 10:00 a.m. ET (1500 GMT). The benchmark index posted a fresh record high on Thursday but ended the week lower. The TSX is up over 25% for the year and looks set to post its best year since 2009. “December is usually a good month for the market. I would anticipate having a bit of a positive month but … I think most of the gains are already booked in from here,” said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth. Markets have cemented expectations that the Bank of Canada will hold rates in its December meeting following stronger-than-expected jobs data, with the central bank having eased the borrowing rate by one percentage point since the start of the year. In the U.S., the Fed is widely expected to cut interest rates in December’s meeting, with markets pricing in an 86% chance of a quarter-point cut, according to LSEG data. Technology stocks (.SPTTTK) led gains with a 0.8% advance. Heavyweight data-center infrastructure provider Celestica (CLS.TO) added 4.8%, while cybersecurity company Blackberry (BB.TO) rose 1.3%. Industrials (.GSPTTIN) was also a boost with defense company Bombardier (BBDb.TO) gaining 1.1%. On the flipside, the communication services index (.GSPTTTS) led declines with Rogers (RClb.TO) and BCE (BCE.TO) dropping 1.3% each. Gold and mining shares also came under pressure, tracking metal prices after having led the index to record highs this year. Among other stocks, Transcontinental (TCLa.TO) shares jumped 20% after agreeing to sell its packaging unit to ProAmpac Holdings, valuing it at C$2.22 billion ($1.61 billion), including debt. Lithium Americas (LAC.TO) is set to join S&P/TSX Index, effective December 22. Shares fell 0.5%.