Toronto stocks slip to near 1-week lows on rate worries

© Reuters. FILE PHOTO: The Art Deco facade of the original Toronto Stock Exchange building is seen on Bay Street in Toronto, Ontario, Canada January 23, 2019. REUTERS/Chris Helgren/File Photo

By Shashwat Chauhan

(Reuters) -Canada's main stock index fell to near one-week lows on Tuesday, dragged down by technology and cannabis stocks, while investors remained wary ahead of an interest rate decision from the Bank of Canada (BoC) this week.

At 10:32 a.m. ET (1532 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 90.22 points, or 0.45 percent, at 20,152.04.

Rate-sensitive technology fell 1.7%, tracking weakness in U.S. technology and growth stocks, as investors feared that the Federal Reserve will hike interest rates for longer after upbeat economic data. [.N]

Traders are pricing in a 73.3% chance of a dialed-down 25 basis-point hike from the BoC on Wednesday, although a slim majority of economists polled by Reuters are expecting a 50 bps rate hike.

"This news would be received well by investors as higher interest rates have been a major source of anxiety this year," said Brandon Michael, senior analyst at ABC Funds.

"This event could mark the beginning of the end of this rate tightening cycle, as the central bank makes progress on their inflation goals."

Meanwhile, Canada's exports rose in October, largely driven by pharmaceutical products, while imports were also up, with both impacted by the depreciation of the Canadian dollar, as per data by Statistics Canada.

The materials sector , which includes precious and base metal miners, rose 0.5% as gold prices climbed against a weaker dollar. [GOL/]

Among single stocks, Cenovus Energy (NYSE:CVE) Inc gained 2.0% after the energy company forecast higher capital expenditure for 2023.

Pot stocks Canopy Growth (NASDAQ:CGC) and Tilray (NASDAQ:TLRY) Brands lost 7% and 6%, respectively, after rallying for five straight sessions on expectations of a positive update on pivotal U.S. banking bill that could provide further legitimacy to the sector.