CANADA STOCKS-TSX edges back from record high ahead of bank earnings

Reuters
昨天
CANADA STOCKS-TSX edges back from record high ahead of bank earnings

TSX ends down 0.1% at 33,776.50

Financial stocks fall 1.4% ahead of bank earnings

Shopify shares lose 7.1%

Materials group gains 3.4% as gold prices climb

Updates at market close

By Utkarsh Hathi and Fergal Smith

Feb 23 (Reuters) - Canada's main stock index pulled back on Monday from an earlier record high as investors weighed an uncertain outlook for U.S. trade policy and turned attention to the start of bank earnings season.

The S&P/TSX Composite Index .GSPTSE ended down 41.01 points, or 0.1%, at 33,776.50, after touching a record intraday high of 33,998.51. On Friday, the index posted a record closing high.

Wall Street stocks tumbled, led by losses in software and financial shares, as risk appetite was dampened by U.S. President Donald Trump's erratic statements on trade policy after the U.S. Supreme Court struck down his emergency tariffs on Friday.

Canada's largest banks are expected to report another quarter of strong earnings, supported by strength in their capital markets and wealth management businesses, but slow loan growth and consumer weakness could put pressure on the lenders' profits.

Bank of Nova Scotia BNS.TO will kick off the first-quarter earnings on Tuesday.

"Bank stocks are near all-time highs and susceptible to a pullback," said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth. "If earnings are good but not great, you could see a selloff."

Financials .SPTTFS, the most heavily weighted sector on the TSX by far, lost 1.4%. Shares of consumer finance company goeasy Ltd GSY.TO ended 7.8% lower.

Technology .SPTTK was down 3.2%, with shares of e-commerce company Shopify Inc SHOP.TO falling 7.1%, while industrials .GSPTTIN declined 1.7%.

Four of the 10 major sectors ended higher.

The materials group, which includes metal mining shares, added 3.4% as a fresh wave of safe-haven demand bolstered gold prices.

Loblaw L.TO said it will invest C$2.4 billion ($1.75 billion) this year to boost its store network and supply chain, and help create about 9,700 jobs related to retail and construction.

Shares of the retailer gained 3%, boosting the consumer staples sector which ended 2.4% higher.

(Reporting by Fergal Smith and Utkarsh Tushar Hathi; Editing by Sahal Muhammed and Nia Williams)

((fergal.smith@thomsonreuters.com; +1 647 480 7446))

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