Jan 21 (Reuters) - Canada's main index extended gains on Tuesday led by mining and technology shares, as investors assessed early clues about U.S. President Donald Trump's trade policies.
The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE), was up 0.3% at 25,249.63, and was set for its sixth straight session of gains.
Among sectors, materials (.GSPTTMT), led the charge with a 1% jump as it tracked rising gold prices.
Information technology (.SPTTTK), rose 0.8%, while utilities (.GSPTTUT), opens new tab, often traded as a bond proxy, added 0.6% as the Canadian 10-year yield fell for a fifth straight session.
In contrast, energy stocks (.SPTTEN), were down 2.3% as crude oil prices fell following Trump's plans to boost U.S. oil and gas production.
Trump did not immediately impose tariffs on Canada and Mexico after taking office on Monday, but said he was thinking of imposing 25% duties starting Feb. 1, citing concerns over illegal immigration and fentanyl smuggling.
"As he (Trump) walked back from imposing tariffs immediately and is pushing a little bit, I think that just gives an opportunity to come to the table," said Michael Constantino, chief executive officer at Webull Canada.
Meanwhile, Canadian Prime Minister Justin Trudeau said on Tuesday his government was ready to respond to all scenarios if Trump imposes tariffs on Canada.
Canada's annual inflation rate dropped to 1.8% on Tuesday, slightly lower than expected, which could prompt the Bank of Canada to trim interest rates again next week despite Governor Tiff Macklem saying last month that further cuts would be gradual.
Amid President Trump's pile of day one executive orders, he didn't immediately impose tariffs,
Traders see an almost 80% chance of a 25-basis-point cut next week.
Among individual stocks, Canadian business jet maker Bombardier (BBDb.TO), fell 6.3%, giving back much of previous day's gains.
Reporting by Ragini Mathur in Bengaluru; Editing by Sahal Muhammed
