TSX falls as material stocks decline

Canada's main stock index fell on Thursday as the materials sector slid tracking lower gold prices, while investors waited for the latest developments on the US-China trade dispute.

* Gold prices fell as investors booked profits after the metal hit a two-week high on increased expectations of a dovish monetary policy stance from the US Federal Reserve.

* At 9:46 a.m. ET (13:46 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 7.3 points, or 0.04%, at 16,476.91.

* US and Chinese officials will hold a telephone call later on Thursday that could pave the way for further in-person trade talks, US Treasury Secretary Steven Mnuchin told CNBC.

* Global stocks were rattled after US President Donald Trump on Tuesday reiterated his threat to impose further tariffs on Chinese imports.

* Healthcare companies slid 0.88%, the most among the major sectors trading lower, and the materials sector , which includes precious and base metals miners and fertilizer companies, lost 0.5%

* The energy sector dropped 0.4% as US crude prices were down 0.3% a barrel, while Brent crude lost 0.2%.

* On the TSX, 81 issues were higher, while 145 issues declined for a 1.79-to-1 ratio to the downside, with 13.33 million shares traded.

* The largest percentage gainer was Air Canada, up 3.9%. Brokerage CIBC raised its price target on the carrier.

* Alaris Royalty followed with a 1.5% rise.

* Vermilion Energy fell 3.4%, the most on the TSX, after RBC downgraded its shares to "sector perform" from "outperform"

* The second biggest decliner was Alacer Gold Corp, down 3.4%.

* The most heavily traded shares by volume were New Gold , Aurora Cannabis and B2gold Corp.

* The TSX posted 14 new 52-week highs and five new lows.

* Across all Canadian issues there were 33 new 52-week highs and 15 new lows, with total volume of 25.68 million shares.