Reuters Canada39;s main stock index closed lower on Monday, hit by falling utility stocks as investors scaled back expectations of a big rate cut from the U.S. Federal Reserve in November amid rising tensions in the Middle East.

The Toronto Stock Exchange39;s SPTSX composite index was down 60.12 points, or 0.25, at 24,102.71.

Expectations of a larger cut by the Federal Reserve have diminished after Friday39;s strong U.S. jobs data that allayed concerns about a slowdown in the world39;s largest economy.

After that strongerthanexpected jobs number on Friday, you really see a lot of the shorterterm traders and shorterterm investors take a little bit of profit, especially with the increase in geopolitical risk in the Middle East right now, said Alfred Lee, deputy chief investment officer at Torontobased Q Wealth Partners.

Liquidity is really still in the driver seat at this point, he said.

Markets currently see an 85.4 chance for a 25basispoint rate cut by the Fed in November, with another similarsized cut expected in December.

This week, investors await U.S. Consumer Price Index CPI figures for clues to the Fed39;s policy adjustment cycle and the kickoff of thirdquarter earnings season with reports from banks.

Spotlight will also be on Canada39;s unemployment data on Friday as investors look for clues on the Bank of Canada policy decision later in the month.

Among sectors, ratesensitive utilities was the worst hit with a 1.75 decline, hurt by nearly 5 drop in…