(Updates with analyst comment, market open prices)

By Sanchayaita Roy

Sept 8 (Reuters) - Canada's main stock index fell on

Monday, as investors took a breather after a week of

record-setting gains and looked ahead to a possible interest

rate cut by the Bank of Canada later this month.

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

was down 0.5% at 28,894.92 points, snapping an

eight-session winning streak.

The benchmark index ended at a record peak on Friday.

Odds of a rate cut rose after data showed on Friday that

Canada's economy shed 65,500 jobs in August, and the

unemployment rate climbed to 7.1%.

Money markets expect a 92% chance of a 25 basis-point

interest-rate cut on September 17, according to data compiled by

LSEG.

The BoC has kept rates steady at 2.75% at its last three

meetings since March.

Investors are also are expecting a rate cut that same day by

the U.S. Federal Reserve after Friday's nonfarm payrolls report

confirmed the U.S. labor market was deteriorating.

"The case is stronger for a rate cut in Canada, although

market expectations are greater for a rate cut in the U.S. at

the September meeting," said Brian Madden​​​​, chief investment

officer at First Avenue Investment Counsel.

"Canada had two back-to-back months of job losses ... The

U.S. job market is slowing, but it's in much better shape."

Ten of the TSX's 11 sectors edged lower on Monday, with

industrial stocks falling 1.2%.

MDA Space ( MDALF ) fell nearly 21% after the space firm said

it received a termination notice from EchoStar for its satellite

constellation contract announced on August 1.

An index of material miners edged slightly

higher, tracking bullion's record rally.

Among other individual stocks, luxury parka maker Canada

Goose rose 7.5% after brokerage TD Cowen upgraded the

stock to "buy" from "hold."