• TSX ends down 0.4% at 27,823.88
• Technology sector loses 1.7%
• Materials group ends 1.8% lower
• Canada's inflation rate eases to 1.7% in July

TORONTO, Aug 19 (Reuters) - Canada's main index fell on Tuesday as technology and metal mining shares lost ground, but the decline was limited after domestic inflation data bolstered expectations for the Bank of Canada to cut interest rates in the coming months.

The S&P/TSX composite index (.GSPTSE) , opens new tab ended down 98.97 points, or 0.4%, at 27,823.88, remaining below the intraday record high of 28,063.73 it notched last Wednesday.

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"Ever since we cracked 28,000 briefly last week, the TSX has been going sideways," said Elvis Picardo, a portfolio manager at Luft Financial, iA Private Wealth. "One really needs a new catalyst for the next leg up."

Canada's annual inflation rate eased to 1.7% in July from 1.9% in the prior month, helped by lower gasoline prices.

"There is little doubt that the Canadian economy is slowing, but the Bank of Canada clearly telegraphed that future rate cuts would be contingent on inflation," Picardo said.

Investors see a roughly 70% chance that the BoC resumes its easing campaign by October, up from 56% before the data.

The TSX is set to extend its record-setting run this year and next as lower borrowing costs, along with potentially greater clarity on U.S. tariffs, offset expected pressure on corporate profits, a Reuters poll found.

The technology sector fell 1.7% as U.S. tech shares lost ground, and the materials group, which includes metal mining shares, was down 1.8%.

Gold and copper prices fell, while the price of oil settled 1.7% lower at $62.35 a barrel.

Energy (.SPTTEN) , opens new tab fell 0.8%, with shares of uranium producer Energy Fuels Inc down 17.5%.

Industrials (.GSPTTIN) , opens new tab were a bright spot, adding 1.1%, with shares of Air Canada (AC.TO) , opens new tab up 1.15% after unionized flight attendants reached an agreement with the carrier, ending a strike.

Real estate (.GSPTTRE) , opens new tab added 1% as bond yields fell. Canada's 10-year yield eased 4.7 basis points to 3.443%.

https://www.reuters.com/markets/europe/tsx-slips-investors-await-fresh-catalyst-support-bull-market-2025-08-19/