(Updates with market opening prices)
By Ragini Mathur
Feb 11 (Reuters) - Canada's main stock index fell on
Tuesday, dragged by mining shares following new U.S. tariffs on
steel and aluminum, while Shopify's ( SHOP ) dour profit outlook weighed
on technology shares.
The S&P/TSX composite index was down 0.55% at
25,512.38.
U.S. President Donald Trump raised tariffs on steel and
aluminum imports on Monday to a flat 25% without exceptions,
risking escalation in global trade war, while also promising to
announce global reciprocal tariffs this week.
Canadian Prime Minister Justin Trudeau called the latest
tariffs "unacceptable" and stated that Canada would firmly
respond if necessary.
"Canada exports a lot of steel, aluminum to the United
States, so this is sort of another reescalation of the trade and
tariff wars that flared up a week or 10 days ago," said Brian
Madden, chief investment officer at First Avenue Investment
Counsel.
A majority of sub-sectors on the index fell, with materials
losing 1.3% on worries about a lower metal demand
outlook triggered by latest tariffs.
Shopify ( SHOP ) fell 4% after a downbeat first-quarter
profit outlook spooked investors, despite strong holiday-quarter
sales. The stock dragged the information technology
sector 1.7% lower.
Energy was a standout, adding 0.7%, continuing its
gains from the previous session as oil prices rose amid worries
over Russian and Iranian oil supply due to sanction threats.
Investors digested U.S. Federal Reserve Chair Jerome
Powell's testimony where he said the central bank is in no rush
to cut its short-term interest rate again given an economy that
is "strong overall", in remarks prepared for a Senate Banking
Committee hearing.
Market focus was also on U.S. inflation data, which is due
on Wednesday.