(Updates at market close)
By Fergal Smith
March 13 (Reuters) - Canada's main stock index fell on
Thursday to a four-and-a-half-month low as investors grew more
risk averse on signs of an escalating global trade war,
technology leading broad-based declines among sectors.
The Toronto Stock Exchange's S&P/TSX composite index
, ended down 220.11 points, or 0.90%, at 24,203.23, its
lowest closing level since October 31.
U.S. President Donald Trump threatened to escalate a global
trade war with further tariffs on European Union goods, as major
U.S. trading partners said they would retaliate for trade
barriers already erected by the U.S. president.
Wall Street also fell on fears that the trade war could
reignite inflation and tip the U.S. economy into recession.
On Wednesday, the Bank of Canada cut its benchmark interest
rate by 25 basis points to 2.75% and warned of "a new crisis" as
it tried to prepare the country's economy for the damage that
tariffs could wreak.
"Tariffs and the potential for a multi-front trade war
between the U.S. and pretty much everyone else appear to be
front of mind," said Colin Cieszynski, chief market strategist
at SIA Wealth Management.
Technology fell 3.4% and heavily weighted
financials were down 1.3%.
Energy lost 0.8% as the price of oil settled 1.7%
lower at $66.55 a barrel.
The only major sector to post gains was materials. It added
2.4% as gold jumped to a record high, approaching the $3,000
milestone, in a boost for metal mining shares.
Shares of First Quantum Minerals Ltd ( FQVLF ) jumped 14.4%
after Panama authorized the sale of copper concentrate at the
company's shuttered Cobre Panama mine.