*

TSX flat

*

Communication Services sector leads losses

*

Ballard Power Systems ( BLDP ) announces largest order; shares

climb

(Updated at 10:13 a.m. ET/ 1413 GMT)

By Purvi Agarwal

April 1 (Reuters) - Canada's main stock index traded

flat on Monday, just below all-time highs, as gains in mining

stocks were eclipsed by declines in communication services

sector, while the latest U.S. inflation print kept the bets of a

June interest rate cut on the table.

At 10:13 a.m. ET (14:13 GMT), the Toronto Stock Exchange's

S&P/TSX composite index was down 2.46 points, or

0.01%, at 22,164.57.

Eight of the eleven sectors on the index slipped, with

communication services down 1.4%.

"Markets were strong overnight that they've kind of been

weakening. It's not unusual (for markets) to change as the

morning progresses when people get up and come into work", said

Colin Cieszynski, chief market strategist at SIA Wealth

Management.

However, the materials sector, which houses

Canadian miners and fertilizer companies, rose 1.2% as higher

gold prices sent miners such as IamGold ( IAG ) and SSR Mining ( SSRGF )

up 6.6% and 3.2%, respectively.

On the data front, the U.S. personal consumption

expenditures(PCE) price index showed a moderate increase on

Friday, keeping alive hopes of an interest rate cut by the U.S.

Federal Reserve in June.

Federal Reserve Chair Jerome Powell said on Friday that he

expects interest rates in the future will be lower than they are

now but does not expect them to return to the levels from before

the COVID pandemic.

"At this point, it looks like markets seem to be hanging a

little bit more on Powell's talk that maybe the Fed doesn't have

to cut interest rates so quickly", Ciezynski added.

Canadian manufacturing activity moved closer in March to

ending a lengthy period of contraction, data showed on Monday.

Among individual stocks, Ballard Power Systems ( BLDP )

surged 12.7% to the top of the index after the fuel cell maker

announced its largest order in history.