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Canada retail sales fell 0.3% in Jan

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Alimentation Couche-Tard ( ANCTF ) down on PT cuts

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TSX down 0.2%

(Updated at 10 a.m. ET/1400 GMT)

By Shubham Batra

March 22 (Reuters) - Canada's main stock index fell on

Friday after reaching record highs in the previous session, but

remained on track for strong weekly gains fueled by domestic

economic data suggesting a soft landing.

At 10:00 a.m. ET (14:00 GMT), the Toronto Stock Exchange's

S&P/TSX composite index was down 36.58 points, or

0.17%, at 22,050.68.

Canada's retail sales contracted a little less than expected

in January, weighed down by lower goods prices and lower sales

of motor vehicles and parts, data showed on Friday.

"Despite only modest rises in retail sales volumes in

January and February, the earlier strength in December means

that growth should remain strong this quarter," Olivia Cross,

North America economist at Capital Economics said in a note.

Yields on both the 2-year and the benchmark

10-year government bond fell 4 basis points.

Technology shares and heavy-weight financials

soured the mood with a 0.6% and 0.2% fall,

respectively.

Materials stocks slipped 0.1% as copper prices

pulled back on a stronger dollar, while gold dipped after

grazing a record high in the previous session.

Energy shares also weakened 0.4% tracking the

slump in oil prices.

On the flip side, healthcare shares were up 3.3%

and set to record their best week in over four months.

Across the border, Wall Street was muted but still on track

for strong weekly gains, as investors cheered the Federal

Reserve sticking to its rate-easing stance.

Back home, shares of Alimentation Couche-Tard ( ANCTF ) were

down for yet another session, falling 1.7%, as multiple

brokerages cut price target for the operator of convenience

stores after it missed earnings expectations.

BMO Financial slid 0.1%. The lender's asset

management arm said it had partnered with U.S. private equity

firm Carlyle Group ( CG ) to broaden access to private markets

for Canadian investors.