(Updated at 10:58 a.m. ET/ 1458 GMT)

By Nikhil Sharma

Sept 18 (Reuters) - Canada's main stock index fell on

Wednesday due to losses in energy shares, even as markets braced

for the U.S. Federal Reserve's monetary policy decision due

later in the day.

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

was down 105.02 points, or 0.44%, at 23,572.68.

At the upcoming U.S. Fed's policy decision at 1400 ET,

investors expect the Fed to announce its first interest-rate cut

in more than four years. They will look for clues on the central

bank's future rate trajectory.

The policy rates are at a more than two-decade high and

traders are betting on a 59% chance for a 50-basis point

reduction and a 41% chance of 25-basis point cut.

Wall Street's main indexes were flat on Wednesday ahead of

the Fed policy decision, providing cues to stocks in Toronto.

"Markets wouldn't be completely shocked by a 50 basis points

move because the overall macro data has been all looking up,"

Shailesh Kshatriya, director, investment strategies at Russell

Investments Canada.

Lower U.S. interest rates tend to benefit zero-yield gold

and other dollar-denominated commodities, and that could boost

Canada's resource-heavy stock market.

The TSX has risen 12.6% this year following three rate cuts

by the Bank of Canada as well as hopes of Fed's policy easing.

Energy companies led losses among sectors with a

1.1% fall tracking oil prices, while TSX's economically

sensitive industrials sector declined 0.7%.

Among individual stocks, shares of Rogers Communications ( RCIAF )

fell 2.6% after the Canadian telecommunication firm

said it would buy Bell's stake in Maple Leaf Sports &

Entertainment for C$4.7 billion ($3.46 billion).

In oil markets, the West Texas Intermediate crude futures

fell 0.18%, while Brent crude fell 0.24%.

Gold prices were up 0.01%.