Updates with morning prices, analyst comment
By Ragini Mathur
Jan 19 (Reuters) - Canada's main stock index retreated from record highs on Monday as U.S. President Donald Trump's threat to impose tariffs on eight European countries sent ripples through global markets, though a surge in the price of precious metals provided a bright spot for mining shares.
The S&P/TSX Composite Index .GSPTSE eased 0.1% to 32,991.06 points by 10:12 a.m. ET, pulling back from all-time highs reached on Friday.
In the latest escalation of Trump's tariff campaign, the U.S. president said on Saturday that he would levy an additional 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain starting February 1. Those tariffs would climb to 25% by June 1 unless the United States was allowed to buy Greenland.
The announcement reignited trade war concerns and cast doubt over trade agreements the EU and Britain negotiated with the U.S. last year.
"With markets at near all-time highs, it's not surprising to see volatility from time to time when risks emerge or concerns about risks... come back to the forefront," said Josh Sheluk, portfolio manager at Verecan Capital Management.
Technology stocks .SPTTTK and heavyweight financials .SPTTFS led the decline, falling 1% and 0.6% respectively.
Metal mining shares .GSPTTMT bucked the trend, climbing 1.9% as gold and silver hit record highs as trade tensions drove a flight to safety. Energy shares .SPTTEN also gained 0.3%, despite oil prices edging lower on the day.
Canadian consumer prices rose at a faster-than-expected pace of 2.4% in December, though closely watched core inflation measures cooled for the third consecutive month.
Trading volumes are expected to be lighter than usual with U.S. markets closed for Martin Luther King Jr. Day.
Last week, Prime Minister Mark Carney secured an initial trade agreement with China as Canada seeks to diversify its trade relationships amid mounting tensions with the U.S.
In corporate news, Barrick Gold ABX.TO appointed Helen Cai as chief financial officer. Its shares rose 1.7%.
(Reporting by Ragini Mathur in BengaluruEditing by Tomasz Janowski, Kirsten Donovan)
((Ragini.Mathur@thomsonreuters.com;))