By Fergal Smith
TORONTO (Reuters) - Canada's main stock index fell on Thursday, including declines for financial and industrial shares, as hawkish comments by a Federal Reserve official set back prospects of a pause in central bank tightening cycles.
The Toronto Stock Exchange's S&P/TSX composite index ended down 95.11 points, or 0.5%, at 18,579.29.
U.S. stocks also closed lower and bond yields climbed as data on the labor market and comments from Federal Reserve Bank of Philadelphia President Patrick Harker reinforced expectations the central bank will be aggressive in hiking interest rates.
"Investors are trying to get a gauge at what point the Federal Reserve is going to pause this rate hiking cycle," said Brandon Michael, senior analyst at ABC Funds in Toronto.
"The market is very sensitive to this and an eventual peaking of short-term rates should provide a positive catalyst towards higher stock prices."
The Bank of Canada has also been hiking rates. Money markets expect the central bank to tighten by at least another 50 basis points at a policy announcement next week.
The Toronto market's heavily weighted financials sector fell 1.2% while industrials ended 2.1% lower.
Rogers (NYSE:ROG) Communications Inc said its wireline services have been restored after a brief disruption it blamed on a fiber cut caused by a third party. Still, its shares ended 0.6% lower.
Resource shares were a bright spot.
The energy group advanced 1.6% as the price of oil settled 0.5% higher at $85.98 a barrel.
The materials group, which includes precious and base metals miners and fertilizer companies, added 0.8 percent as copper prices rallied.