(Updated at 10:25 a.m. ET/ 1425 GMT)

By Nikhil Sharma

Oct 7 (Reuters) - Canada's main stock index was subdued

on Monday as losses in utility companies' shares were countered

by gains in the energy sector, while investors awaited domestic

and U.S. economic data later in the week.

The Toronto Stock Exchange's S&P/TSX composite index

was down 17.56 points, or 0.07%, at 24,145.27.

Expectations of a larger cut by the Federal Reserve have

diminished after Friday's strong U.S. jobs data that allayed

concerns about a slowdown in the world's largest economy.

Markets are still "digesting the employment numbers from

last Friday in the US and what that may mean for interest rate

expectations for the US Federal Reserve moving forward," said

Macan Nia, co-chief investment strategist at Manulife Investment

Management.

Focus is now on the U.S. Consumer Price Index (CPI) figures

on Thursday for clues to the Fed's policy adjustment cycle.

Markets currently see an 85.4% chance for a 25-basis-point

rate cut by the Fed in November, with another similar-sized cut

expected in December.

Spotlight will also be on Canada's unemployment data on

Friday as investors look for clues on the Bank of Canada policy

decision later in the month.

Among sectors, rate-sensitive utilities was the

worst hit with a 1.1% decline, hurt by 3% drop in shares of

energy provider Emera ( EMRAF ), while the materials sector

also fell significantly.

The energy sector gained 1.3%, continuing its

rally as oil prices extended gains on fears of a wider Middle

East conflict causing potential disruption to exports from the

region.

The week also marks the beginning of earnings season on Wall

Street, with major banks including JP Morgan Chase,

Wells Fargo ( WFC ) and BlackRock expected to report

their quarterly results on Friday.