(Adds comments, updates numbers)
By Shashwat Chauhan
Oct 6 (Reuters) - Canada's main stock index fell on Thursday, dragged by financial and consumer staple stocks, with investors awaiting U.S. jobs data due later this week to gauge the Federal Reserve's future actions around interest rates.
At 09:52 a.m. ET (1352 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 84.92 points, or 0.44%, at 19,150.17.
The index climbed 5% at the start of the week on hopes that central banks might pivot sooner-than-expected from their hawkish stance to combat inflation.
However, the optimism was short-lived amid a mixed set of U.S. economic reports. Latest data showed weekly jobless claims increased more than expected last week, but the labor market still remains tight.
All eyes are now on U.S. nonfarm payrolls and Canadian employment report on Friday.
"I believe markets could consolidate in a range as we head into tomorrow's jobs numbers and next week's CPI print. The strength of the labor market and inflation are on the minds of all investors right now," said Brandon Michael, senior analyst at ABC Funds in Toronto.
Meanwhile, the Canadian dollar is set to fall short of a September forecast for the coming year following sharp losses in recent weeks and as rate hikes by the Bank of Canada threaten to push the domestic economy into recession, a Reuters poll showed.
The Canadian central bank has already raised its overnight lending rates by 300 basis points in six months to fight inflation, which began to cool slightly in July but is still running at levels not seen in nearly four decades.
Investors will also closely scrutinize a speech by Bank of Canada Governor Tiff Macklem that could help guide expectations for the pace of additional rate hikes. Traders are pricing in a 47.1% chance of a 50 bps hike by the bank later this month.
The heavyweight energy sector climbed 0.7%, tracking crude prices .
The financials sector slipped 1%, while the industrials sector fell 0.6%.
Fortuna Silver Mines climbed 7.7% after the miner reported gold and silver production numbers for third quarter.
Sleep Country Canada Holdings dipped 5% after CIBC cut its price target on the home furnishing company's stock. (Reporting by Shashwat Chauhan in Bengaluru; Editing by Shinjini Ganguli and Uttaresh.V)