(Updates with morning prices)

By Nikhil Sharma

March 13 (Reuters) - Canada's main stock index edged

down on Thursday in volatile trading, as investors remained

risk-averse amid an intensifying trade war with the United

States.

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

was down 0.1% at 24,394.32.

Information technology led the declines, falling

2.1% to a four-month low. The sub-index has dropped 17.6% from

its record peak a month ago.

Consumer staples and healthcare shed

1.2% each.

"It's still a very volatile situation and things could

change quite rapidly," said Colin Cieszynski, chief market

strategist at SIA Wealth Management, adding the "trade war with

the U.S. is a huge risk to Canada", which is being reflected in

the equities.

U.S. President Donald Trump's wavering trade policies have

triggered a global trade war, rattling investors, consumers and

business confidence, while increasing recession risks for the

United States as well as for Canada.

The Bank of Canada, which delivered a 25-basis point

interest rate cut on Wednesday, also raised concerns about

inflationary pressures and weaker growth stemming from tariff

uncertainties.

Further adding pressures on equities, the Canadian 10-year

benchmark yield jumped five basis points at 3.130%.

Wall Street's benchmark S&P 500 lost 0.7% on

Thursday, primarily hit by Trump's rhetoric to impose a 200%

tariff on all wines and other alcoholic products from the

European Union.

Trump on Wednesday also threatened to impose additional

tariffs on EU goods, as major U.S. trading partners vowed to

retaliate against the trade barriers already erected by the U.S.

president.

The materials index, however, added 1.4% due to

gold prices trading at a near all-time high.

Latest U.S. trade policies have helped gold, an asset

preferred by investors amid geopolitical and economic turmoil,

gain 12% so far this year.

Birchcliff Energy ( BIREF ) jumped 12.5%, the biggest

individual gainer on the TSX, after it updated its annual

average production outlook.