(Updates at market close)

By Fergal Smith

Feb 7 (Reuters) - Canada's main stock index fell on

Friday, led by declines for the communication services sector,

as the risk of a wider trade war spooked investors and after

stronger-than-expected jobs data tempered expectations for Bank

of Canada interest rate cuts.

The S&P/TSX composite index ended down 91.58

points, or 0.36%, at 25,442.91. For the week, the index was down

0.35%, after three straight weekly gains.

Wall Street also lost ground after U.S. President Donald

Trump said he might impose reciprocal tariffs on several

countries next week. On Monday, Trump suspended his threat of

steep tariffs on Mexico and Canada, agreeing to a 30-day pause.

"President Trump looking to have retaliatory tariffs against

unnamed countries continues to prove that this is top of mind

for him," said Ben Jang, a portfolio manager at Nicola Wealth.

"The strengthening overall of the Canadian labour market

just gives the Bank of Canada some flexibility (to deal) with

the unknowns of tariffs."

Canada's economy added 76,000 jobs in January, eclipsing

expectations for a gain of 25,000, and the unemployment rate

unexpectedly dipped to 6.6%.

Investors see a 62% chance that the Bank of Canada will cut

its benchmark interest rate by a further 25 basis points in

March, down from 64% before the data.

The communication services sector lost 2%, with shares of

BCE Inc ( BCEXF ) down 6.2%, their second straight day of sharp

declines.

"The market is now looking for (BCE) to cut their dividends

to delever their balance sheet so that they can absorb

short-term pain and refocus on being a stable dividend company

as opposed to a growth name," Jang said.

Shares of Canopy Growth Corp ( CGC ) tumbled 27.6% after

the cannabis firm posted a bigger third-quarter loss.

Nine of ten major sectors lost ground. The exception was

energy, which added 0.5%, as the price of oil settled 0.6%

higher at $71.00 a barrel.