CANADA STOCKS-Toronto stocks fall ahead of Fed's Powell comments

(Updated at 10:24 a.m. ET/ 1424 GMT)

By Nikhil Sharma

Sept 30 (Reuters) - Canada's main stock index fell on Monday, hurt by mining stocks, as investors awaited the Federal Reserve Chair Jerome Powell's speech later in a day to get clues on U.S. policy outlook.

The Toronto Stock Exchange's S&P/TSX composite index was down 0.26%, at 23,894.19, and was set to extend its fall from the previous session

The Canadian market also took cues from Wall Street, where the benchmark S&P 500 was down over 0.1%.

As all eyes were on Jerome Powell's comments at 1355 ET, economists have said a mistake in setting interest rates during the last phase of Fed's inflation battle could impair the country's economy over the next year.

Markets unanimously see the Fed to further lower its borrowing costs at its November policy meeting, after slashing rates by a hefty 50 basis points recently.

"It's not atypical to see a little bit of a pullback the last trading day of the month, especially after such a strength" last week, said Angelo Kourkafas, investment strategist at Edward Jones Investments.

Slight hesitation ahead of major employment data may also be contributing factor, Kourkafas added.

August's job openings report and September's pivotal payrolls figure, along with final business activity estimates will also be on investors radar this week.

The Bank of Canada is also expected to boost the country's weak economy by

cutting interest rates

for the fourth time this year at its October meeting.

The TSX has gained 14% this year, partly benefiting from the policy easing cycle in the U.S. and Canada.

The materials sector led the sectoral losses and fell 1.4% as gold prices fell but were still set for its biggest quarterly gain in more than eight years.

On the TSX, International Petroleum Corp??, First Majestic Silver Corp? and Aya Gold & Silver Inc? were the worst hit, down between 4.4% and 5.2%. (Reporting by Nikhil Sharma in Bengaluru; Editing by Leroy Leo)