(Updates with morning prices)

By Pranav Kashyap

Feb 21 (Reuters) -

Canada's primary stock index declined on Friday, influenced

by falling commodity prices, while investors anticipated crucial

U.S. economic data.

The S&P/TSX composite index was down 0.5% at 10:03

a.m. ET (1503 GMT), its lowest in more than two weeks, and was

set to fall for a third straight session - its longest losing

streak in over two months.

The index is set to log a 0.4% decline this week.

The materials sector was the biggest drag on

Friday, losing 1.4% as copper prices slipped.

Gold fell 0.4%, yet marked an eighth consecutive

week of gains due to safe-haven demand amid concerns over U.S.

tariff threats and the Russia-Ukraine conflict.

Prime Minister Justin Trudeau and Ukrainian President

Volodymyr Zelenskiy have underscored the importance of including

Kyiv in any peace talks aimed at ending the war.

Investors are expecting the preliminary February economic

activity surveys from S&P Global at 9:45 a.m. ET, followed by

the final consumer sentiment reading from the University of

Michigan at 10 a.m. ET.

Canadian retail sales grew 2.5% in December. A speech by

Bank of Canada Governor Tiff Macklem is slated for 12:45 p.m.

ET.

"This release doesn't move the needle for the Bank of

Canada's interest rate decision next month, which will

ultimately hinge on the fourth-quarter GDP release next week and

whether the U.S. tariffs scheduled for March 4 come into effect

or not," said Stephen Brown, deputy chief North America

economist at Capital Economics.

The energy sector lost 1.1% after oil prices

fell 1.2% due to worries about potential supply disruptions in

Russia.

Only two of the 11 sectors were trading in the green.

For the week, the healthcare sector was on

course to be the standout performer, with a 4.3% gain.

The technology sector faced challenges, losing

2.9%, and was set to emerge as the week's weakest performer.

In earnings-driven moves, Storagevault rose 10%

after the company beat full-year revenue estimates.