(Reporting by Fergal Smith in Toronto and Sudeshna Ghoshal in Bengaluru; Editing by Diti Pujara and Alistair Bell)
Weekly loss despite strong bank earnings
For the week, the index was down 0.2%, adding to its slight decline in the prior week, despite all six major banks reporting stronger-than-expected quarterly earnings.
U.S. benchmark the S&P 500 also lost ground, with investors turning cautious after Warsh reiterated the central bank's focus on fighting inflation.
Canadian GDP increased at an annualized rate of 3.3% in the second quarter after six months of virtually no growth, aided by strong jump in exports and solid domestic demand, while an advanced indicator showed that the economy was largely flat in July.
"The breakdown of second-quarter GDP growth was even better than the solid 3.3% annualised gain might suggest, although the preliminary estimate of unchanged GDP in July and the headwinds from new U.S. tariffs means it is unlikely that this momentum will be sustained," Ariane Curtis, senior North America economist at Capital Economics, said in a note.
The U.S. imposed new 50% tariffs on $20 billion of Canadian imports last Saturday after talks between the two countries collapsed.
Materials, energy and technology sectors decline
The materials group .GSPTTMT, which includes metal mining shares, gave back some recent gains to end 2.8% lower. Gold XAU= was down 3.1% as traders increased bets on an interest rate hike next month from the Fed.
Energy lost 1% as U.S. crude oil futures CLc1 settled 0.2% lower at $83.40 a barrel on rumors of a possible agreement on shipping through the Strait of Hormuz.
Shares of data center developer Keel Infrastructure KEEL.TO were down 7.8%, which contributed to a 1.2% decline for technology .SPTTTK.
Just three of the 10 major sectors ended higher, including consumer discretionary .GSPTTCD. It rose 0.5%.
TSX falls to eight-day low as materials and energy weigh
Canada's main stock index fell to an eight-day low on Friday, led by declines for metal mining shares, as investors weighed hawkish comments from Federal Reserve Chair Kevin Warsh and doubted that second-quarter strength in Canada's economy would be sustained.
The S&P/TSX Composite Index .GSPTSE ended down 280.33 points, or 0.8%, at 36,553.92, its lowest closing level since August 20.
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