Oct 10 (Reuters) - (This Oct. 10 story has been corrected to clarify the context and quote about U.S. imposing asset limit on TD Bank in paragraphs 5 and 6)

Canada's main stock index touched a record high on Thursday, led by gains in commodity-linked stocks, while TD Bank (TD.TO) , opens new tab dropped on a report that the lender is expected to pay a $3 billion penalty under a U.S. settlement.

The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab was up 32.39 points, or 0.13%, at 24,257.29.

The heavyweight energy (.SPTTEN) , opens new tab and materials (.GSPTTMT) , opens new tab sectors gained over 1% each as they tracked higher oil and gold prices.

Healthcare (.GSPTTHC) , opens new tab was the biggest decliner, while financials (.SPTTFS) , opens new tab fell 0.7% led by a 5.3% fall in shares of TD Bank (TD.TO) , opens new tab.

Canada's second-largest lender was expected to pay about $3 billion in penalty over charges it failed to curb money laundering by drug cartels, with U.S. regulators also expected to impose an asset limit barring it from growing above a certain level in the country, the Wall Street Journal reported.

"I think that's a much bigger deal" because "it's preventing them from perhaps growing or running their business the way that they would like to," said Josh Sheluk, portfolio manager at Verecan Capital Management, referring to the asset limit.

Markets are now awaiting Canadian unemployment data due on Friday for more insights on Bank of Canada's policy move later this month.

Traders also added to their bets of a quarter-point rate cut by the U.S. Federal Reserve in November after latest data showed the annual increase in consumer prices was the smallest in more than three-and-a-half years.

Markets now see a 93.3% chance of a 25-basis-point cut at the Fed's policy meeting next month, compared to 82.8% earlier in the day.

"We're not overreacting to one specific data point, but (the inflation numbers are) something to pay attention to. It seems like a bit of a repricing on the Federal Reserve's rate path," said Kevin Headland, co-chief investment strategist at Manulife Investment Management.

The U.S. weekly jobless claims for last week surged, partially boosted by Hurricane Helene and furloughs at Boeing (BA.N) , opens new tab.

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https://www.reuters.com/markets/tsx-futures-slip-investors-await-us-inflation-report-2024-10-10/