Canada's main stock index was largely unchanged on Monday as gains in heavyweight banking stocks after US Federal Reserve Chairman Jerome Powell was nominated to lead the central bank for a second term offset losses in miners from weak gold prices.

The financials sector rose 0.6%, with shares of National Bank of Canada, Royal Bank of Canada and Bank of Montreal inching higher in morning trade.

The gains mirrored those of Wall Street banks, which outperformed broader markets as investors anticipated faster US interest rate hikes in 2022, but gave global investors stability and some predictability as the Fed plans withdrawing stimulus.

At 10:45 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was up 0.02% at 21,558.73 as Wall Street indexes cruised to record highs.

TSX gains as mining stocks rise tracking gold prices

The Canadian stocks benchmark hit a one-week low on Friday, led by energy shares after oil prices slumped following a fresh surge in COVID-19 cases in Europe.

Oil recovered slightly on Monday, lifting the energy index by around 1%.

However, the materials sector, which includes precious and base metals miners and fertilizer companies, lost 0.6% as gold futures tumbled over 1.5% in the wake of Fed chair announcement.

Investors also remained on edge over the flood situation in Canada's westernmost province, British Columbia, where more potentially damaging weather is forecast this week.

Meanwhile, a flash estimate from Statistics Canada showed wholesale trade most likely rose 1.4% in October from September, led by higher sales in the motor vehicle and motor vehicle parts and accessories subsectors.