(Updates with market opening prices)

By Ragini Mathur

Jan 21 (Reuters) - Canada's main index extended gains on

Tuesday led by mining and technology shares, as investors

assessed early clues about U.S. President Donald Trump's trade

policies.

The Toronto Stock Exchange's S&P/TSX composite index

was up 0.3% at 25,249.63, and was set for its sixth

straight session of gains.

Among sectors, materials led the charge with

a 1% jump as it tracked rising gold prices.

Information technology rose 0.8%, while

utilities, often traded as a bond proxy, added 0.6%

as the Canadian 10-year yield fell for a fifth

straight session.

In contrast, energy stocks were down 2.3% as

crude oil prices fell following Trump's plans to boost U.S. oil

and gas production.

Trump did not immediately impose tariffs on Canada and

Mexico after taking office on Monday, but said he was thinking

of imposing 25% duties starting Feb. 1, citing concerns over

illegal immigration and fentanyl smuggling.

"As he (Trump) walked back from imposing tariffs immediately

and is pushing a little bit, I think that just gives an

opportunity to come to the table," said Michael Constantino,

chief executive officer at Webull Canada.

Meanwhile, Canadian Prime Minister Justin Trudeau said on

Tuesday his government was ready to respond to all scenarios if

Trump imposes tariffs on Canada.

Canada's annual inflation rate dropped to 1.8% on Tuesday,

slightly lower than expected, which could prompt the Bank of

Canada to trim interest rates again next week despite Governor

Tiff Macklem saying last month that further cuts would be

gradual.

Traders see an almost 80% chance of a 25-basis-point cut

next week.

Among individual stocks, Canadian business jet maker

Bombardier fell 6.3%, giving back much of previous

day's gains.