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TSX flat

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Canadian dollar weakens, benchmark yield climbs

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Energy shares marked biggest one-day gain in near two

weeks

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Bitfarms ( BITF ) to adopt 'poison pill' amid Riot takeover attempt

(Updated at 10 a.m. ET)

By Khushi Singh

June 10 (Reuters) - Canada's main stock index was little

changed on Monday as gains in materials and energy stocks,

boosted by higher commodity prices, was offset by investor

caution ahead of crucial U.S. inflation data and the Federal

Reserve's monetary policy meeting due later this week.

At 10:02 a.m. ET (14:02 GMT), the Toronto Stock Exchange's

S&P/TSX composite index was down 7.17 points, or

0.03%, at 21,999.83.

The Canadian dollar weakened, while the government 10-year

bond yields climbed as much as 3.518%. The yield on

similar U.S. benchmark debt also rose on concerns that stubborn

inflation will keep interest rates higher for longer in the

United States.

Investors drew a cautious stance ahead of Wednesday's U.S.

consumer prices data and the Fed's monetary policy meeting,

which could drive market action and determine the country's

timing and scope of monetary policy easing this year.

The U.S. stocks indexes also edged lower in caution.

Rate-sensitive utilities and financials

shares slipped 0.2% and 0.3%, respectively, on the TSX.

Meanwhile, Canada's manufacturing sales data and wholesale

trade numbers for the month of April are scheduled for release

on Friday.

While the Bank of Canada (BoC) has already initiated

monetary policy easing with a 25 basis points cut last week,

investors are betting on a near 51% probability that the Fed

will start rate cuts in September.

"With interest rates still at restrictive levels, there is

room for the BoC to cut further without stoking a resurgence in

price growth," said Nathan Janzen, assistant chief economist at

the Royal Bank of Canada in a note.

The energy sector gained 1.3%, leading sectoral

gains as crude prices moved higher, buoyed by hopes of rising

fuel demand this summer.

The materials sector, which includes metals

miners and fertilizer companies, followed with a 0.5% climb,

supported by higher prices of most metals, including gold and

copper.

In corporate news, Bitcoin miner Bitfarms ( BITF ) dropped

1.5% after it approved the adoption of a "poison pill" to fend

off a potential hostile takeover attempt by rival Riot Platforms ( RIOT )

.