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TSX down 0.58% as seven sectors decline

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Canadian banks to set aside C$5.22 billion in loan-loss

provisions

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NovaGold and Energy Fuels Inc gain amid sector declines

(Updates with closing price)

By Nikhil Sharma

Aug 25 (Reuters) - Canada's main stock index closed in

the negative on Monday as investors get ready for a week of

earnings from top domestic lenders.

Despite U.S. Federal Reserve Chair Jerome Powell's hints about

interest rate cuts propelling the market to new heights in the

previous session, investors remained cautious.

At the end of Monday's trading, the Toronto Stock Exchange's

S&P/TSX composite index closed down 0.58% at 28,169.94

points.

Of the 10 sectors, seven closed in the red, the healthcare index

fell the most with a 2.22% decline, followed by

industrials.

The Canadian banks will kick off earnings season on Tuesday,

beginning with Bank of Montreal ( BNKD ) and Bank of Nova Scotia ( BNS )

. Canada's big six banks are expected to set aside a

total of C$5.22 billion in loan-loss provisions for the third

quarter, compared to C$6.37 billion in the second quarter,

according to data compiled by LSEG.

Most resources and energy stocks fared well, with NovaGold

and Energy Fuels Inc gaining 5.6% and 3.55%

respectively.

Big banks are expected to have cut third-quarter loan-loss

provisions from the prior quarter, according to data compiled by

LSEG, as the hit from U.S. tariffs on loan portfolios appears

less than feared.

Chipmaker Nvidia's results on Wednesday will attract

global attention as it could determine the future of the

tech-driven rally.

The Personal Consumption Expenditures Price index - the

Fed's preferred inflation gauge - is due on Friday, and will be

a key indicator for expectations around rate cuts.

In Canada, second-quarter GDP numbers on Friday will be watched

to evaluate the impact of tariffs on the economy.