* TSX off 0.1%
* Energy shares biggest losers
* Air Transat gains on new deal with union
Jan 8 (Reuters) -
Canada's main stock index fell on Monday as energy shares declined, tracking lower crude prices while investors await upcoming earnings season and U.S. inflation data this week.
At 10:04 a.m. ET (1504 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 13.93 points, or about 0.1% at 20,923.62.
Energy stocks shed 2.7% as oil prices fell by more than 2% on sharp price cuts by top exporter Saudi Arabia and a rise in OPEC output.
The materials index slid 0.2% as gold prices hit a three-week low.
The commodity-heavy TSX had a shaky start to 2024 due to fading optimism around the prospect of early rate cuts from the Federal Reserve.
"If the central banks actually do start cutting interest rates, it would mean that we're heading into a recession," said Colin Cieszynski, portfolio manager and chief market strategist at SIA Wealth Management.
"Canada may be in a recession already, and the the U.S. may not be that far behind."
Investors are now gearing up for the quarterly earnings season, which big U.S. banks will kick off on Friday. Data on U.S. consumer prices due on Thursday will also be on the watchlist for further cues on the interest rate path.
Mirroring the trend on Wall Street, Canadian technology shares, which took a beating last week, recouped some losses to rise 1.4%, with Shopify up 1.9% and among top gainers.
Shares of Tilray Brands, scheduled to report its earnings this week, rose about 1%.
Air Transat
gained 2.4% after the Canadian leisure carrier agreed over a new labor contract with the Canadian Union of Public Employees. (Reporting by Amruta Khandekar and Purvi Agarwal in Bengaluru; Editing by Ravi Prakash Kumar)
