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April retail sales up 0.7%, a drop likely for May

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May producer prices flat

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Lassonde announces agreement to acquire Zidian Group

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TSX down 0.1%

(Updated at 10:20 a.m. ET)

By Nikhil Sharma

June 21 (Reuters) - Toronto stocks were set for their

fifth weekly decline as mining shares fell on Friday, while

investors assessed the latest batch of domestic and U.S.

economic data for more clues on the Bank of Canada's

interest-rate trajectory.

At 10:20 a.m. ET (14:20 GMT), the S&P/TSX composite index

was down 18.07 points, or 0.08%, at 21,563.28.

Material shares were the top losers, with a 1.5%

fall, as sluggish demand from China dented base metal prices.

Prices of precious metals were also down.

"Canadian markets tend to move more with commodities and

weakness in the U.S. dollar," said Allan Small, senior

investment advisor at Allan Small Financial Group with iA

Private Wealth.

Canada's retail sales expanded 0.7% in April as expected,

bucking a trend of decline in the past three months as sales at

gasoline pumps boosted the overall numbers, data showed on

Friday.

Separately, producer prices were unchanged in May from April

as lower prices for energy and petroleum products were offset by

higher prices for primary non-ferrous metal products.

Traders are currently pricing in a 72.2% chance of another

25-basis point rate cut by the Canadian central bank.

"If we see Canadian CPI come in again lower than expected,

we are going to start to hear talks about another cut in July."

Small added.

The S&P 500 and the Nasdaq fell on Friday weighed down by

chip stocks. U.S. business activity crept up to a 26-month high

in June amid a rebound in employment, but price pressures

subsided considerably.

Food and beverage company Lassonde Industries ( LSDAF ) rose

1.6% following an agreement to acquire U.S.-based specialty food

manufacturer Zidian Group for $235 million.