(Updates after markets open)

By Ragini Mathur

Feb 27 (Reuters) - Canada's main stock index struggled

to find direction on Thursday as escalating global trade

tensions fueled risk-aversion, with strong bank earnings failing

to boost market sentiment.

The S&P/TSX composite index was down 0.08% at

25,309.9, following three consecutive sessions of gain.

"Markets are going to be in very uncertain territory for

some time here," said Michael Sprung, president at Sprung

Investment Management.

"The main thing causing confusion is the worry over tariffs,

particularly with respect to Canada and Mexico, but now also

with the threatened tariffs on the European Union as well."

U.S. President Donald Trump proposed a month-long extension

on new tariffs for Mexican and Canadian imports, potentially

taking effect April 2.

He also suggested a 25% "reciprocal" tariff on European

automobiles and other goods.

Mining shares led the declines on the TSX,

dropping 1.3% as gold prices fell more than 1% to their lowest

level in over a week due to a firmer U.S. dollar.

The heavily-weighted financial sector fell 0.5%,

despite strong quarterly results from three major Canadian

banks.

Shares of Royal Bank of Canada ( RY ) dropped 3.2%, TD Bank

shed 0.5% and CIBC gained 0.8%, after each of

them beat quarterly profit estimates on Thursday.

The technology sector dipped 0.5%, giving up the

gains from the previous session.

Capping overall losses, energy stocks rose more

than 1% as oil prices climbed 1.5% after Trump canceled

Chevron's ( CVX ) Venezuela operations license, triggering

supply concerns.

Utilities provider Superior Plus ( SUUIF ) topped the

benchmark index with a 10% rise, after it exceeded quarterly

revenue estimates.

Shares of oil producer Veren ( VRN ) rose 9% following

better-than-expected quarterly results.