CANADA STOCKS-TSX decline as investors react to US inflation data

Updated at 10:08 a.m. ET/ 1408 GMT

By Nikhil Sharma

Sept 11 (Reuters) - Canada's main stock index fell on Wednesday in a broader decline, after mixed U.S. inflation data reduced hopes for a mighty 50-basis points rate cut in the United States week.

At 10:19 a.m. ET (14:19 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 126.22 points, or 0.55%, at 22,876.87.

At least ten sectors saw declines, with the industrials sector .GSPTTIN leading the way with a 1% drop, driven by SSR Mining SSRM.TO down 3.1%, Orla Mining OLA.TO falling 2.5% and OceanaGold OGC.TO edging down 2.0%.

Domestic markets also took their clues from Wall Street where the major indexes slipped following the key inflation data. .N

The U.S. consumer prices rose moderately in August, but persistent sticky inflation might deter the Federal Reserve from implementing a half-point interest rate cut week.

"Fed cutting rates in general is good our market" but "I think for the six weeks markets are going to be volatile," says Allan Small senior investment advisor at Allan Small Financial Group with iA Private Wealth.

Meanwhile, investors also reacted to the first U.S. presidential debate between Donald Trump and Kamala Harris on Tuesday that propped up Harris' odds of winning the White House in November.

Canada's consumer discretionary .GSPTTCD sector gained 1.4%, helped by discount retailer Dollarama DOL.TO rising 4.9% after second-quarter profit beat.

The TSX's energy group .SPTTEN rose 0.5%, while the financials sector .SPTTFS slipped 0.2%.

The most heavily traded shares by volume were Canadian Natural Resources Ltd CNQ.TO, Pembina Pipeline Corp PPL.TO and Canadian National Railway Co CNR.TO.

Gold prices fell on Wednesday as the dollar and Treasury yields firmed after U.S. inflation data. Meanwhile, West Texas Intermediate crude futures CLc1 rose 1.31% and Brent crude LCOc1 gained 1.04% O/R

Crude oil and gold are among Canada's top exports.

The TSX is up 9.6% for the year.

(Reporting by Nikhil Sharma in Bengaluru; Editing by Shreya Biswas and Vijay Kishore)

((Nikhil.Sharma@thomsonreuters.com;))