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.