July 6 (Reuters) - Canada's resource-heavy benchmark stock

index was down on Monday, pressured by a slide in gold and crude

oil prices, while investors assessed domestic and U.S. economic

data to gauge the Federal Reserve's monetary policy path.

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

fell 0.25% to 35,186.63 points by 11:59 a.m. ET.

* The materials and global gold indexes

fell 2.5% and 2.3%, respectively, as bullion prices retreated

from a two-week high. Stocks of Canadian miners I-80 Gold

Corp ( IAUX ), Eldorado Gold ( EGO ) and Endeavour Silver ( EXK )

were down between 2.9% and 6.9%.

* Canada's energy index dipped 0.4%, tracking a

fall in crude prices earlier in the day, after

the OPEC+ agreed to further raise output targets from August

even as exports through the Strait of Hormuz continued to

recover, increasing prospects of elevated global supplies.

* Vermilion Energy ( VET ) and International Petroleum

Corporation ( IPCFF ) were among the biggest decliners on the

energy index, falling 1.3% and 1%, respectively.

* An S&P Global survey showed that Canada's services economy

contracted in June as geopolitical uncertainty and elevated

prices hurt demand. However, the recent slide in crude prices

has raised expectations of the economy returning to growth.

* "We're looking at the economy to kind of bounce back from

two quarters of flat to negative growth with slightly positive

growth," said Michael Dehal, senior portfolio manager at Dehal

Investment Partners at Raymond James.

* "So we're not really concerned on the macro front, given

the war is done and inflationary concerns are easing."

* Last week, the S&P/TSX Composite index hovered near a

record high, supported by easing tensions in the Middle East and

fading Fed rate-hike expectations following a soft U.S. labor

market report.

* Traders are currently pricing in just one U.S. rate hike

by the end of this year, according to LSEG data, while the Bank

of Canada is expected to keep interest rates steady this year,

with its next policy decision due on July 15.

* Canada has selected Germany's TKMS to build 12 submarines

for its navy, the Globe and Mail reported on Monday, in a move

seen as deepening defense ties with Europe.