TSX weakens on gold and materials stocks; loonie gains on Poloz's comments

TORONTO -- Canada's main stock index was dragged lower this morning, pulled down by most sectors including gold and materials stocks.

The S&P/TSX composite index was down 71.54 points at 15,110.65, after 90 minutes of trading.

South of the border, U.S. markets were closed for the July 4 holiday.

The Canadian dollar was trading at 77.37 cents US, up from 77.06 cents US on Friday.

The bump in the loonie came after Bank of Canada governor Stephen Poloz reiterated hawkish comments about interest rates in an interview with German newspaper Handelsblatt.

Expectations have increased that the central bank will raise its key interest rate at its next rate announcement on July 12.

In commodities, the August crude contract was up 17 cents at US$47.24 per barrel and the August natural gas contract jumped two cents at US$2.98 per mmBTU.

The August gold contract gained US$3.80 to US$1,223 an ounce and the September copper contract dipped a penny at US$2.69 a pound.

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