Canada's main stock index was little changed on Tuesday, as weakness in consumer staples stocks was offset by gains in commodity-linked shares, while fears around higher inflation dented market sentiment.

At 9:53 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was up 8.57 points, or 0.04%, at 20,424.88, after a long weekend.

The Canadian equity market was closed on Monday for the Thanksgiving Day holiday.

Healthcare stocks also fell 0.4% with pot producers Aurora Cannabis Inc, Tilray among the top drags.

Concerns that higher inflation could prompt a sooner-than-expected dial down of economic stimulus by central banks and a slowdown in global economic recovery have rattled investors appetite for risky assets.

"Canada is just kind of catching up a little bit to the US, yesterday the US markets were down and Canada was closed," said Colin Cieszynski, chief market strategist at SIA Wealth Management.

TSX gains on higher oil stocks, robust employment recovery

"This often happens on days when the holidays are different, there's just a little bit of rebalancing to bring the two indices kind of back in line with each other."

Limiting losses were materials stocks, which include precious and base metals miners and fertilizer companies, that added 1.3% as gold futures rose 0.2% to $1,757.5 an ounce.

The Canadian equity index has gained around 17% so far this year on hopes of a steadier post-pandemic economic recovery, however, it recently lost steam on persisting concerns over higher inflation derailing the global economic growth.

The energy sector gained 0.7%, eyeing its third straight session of gains, as oil prices inched towards a three-year high, supported by a rebound in global demand.

Highlights

Fashion retailer Aritzia Inc and jet company Bombardier Inc were the biggest decliners on the index.

The TSX posted seven new 52-week highs and four new lows.

Across Canadian issues, there were 49 new 52-week highs and 46 new lows, with total volume of 61.86 million shares.