CANADA STOCKS-TSX falls as US-China trade war escalates with new tariffs

By Sanchayaita Roy and Ragini Mathur

April 9 (Reuters) - Canada's main stock index fell on Wednesday amid choppy trading, with energy stocks leading the losses, as China in a retaliatory move more than doubled its tariffs on U.S. goods after President Donald Trump's reciprocal tariffs took effect.

Toronto Stock Exchange's S&P/TSX composite index .GSPTSE edged down 0.4% at 22,419.73 points, and was poised for a fifth consecutive session of losses.

Trump's steep 104% tariffs on Chinese goods took effect on Wednesday, prompting Beijing's swift response with 84% duties on U.S. imports.

The escalating trade war between the world's two largest economies rattled even safe-haven assets like the U.S. dollar and Treasuries, driving bond yields higher.

"We have seen just in the past couple of weeks and months, this tariff situation is evolving and things can change very quickly", said Devin Cattelan, Portfolio Manager at Verecan Capital Management.

"These decisions are made on a day-to-day basis, even seems like hour-to-hour basis and there is a lot of uncertainty in the meantime and markets are reacting to that in the most part."

On TSX, energy stocks .SPTTEN led the declines by 2%, after oil prices plunged as much as 7%, hitting fresh four-year lows before recovering some ground, after China's fresh move.

Materials .GSPTTMT, conversely, gained 1.4% as Canadian gold miners rallied on the back of strengthening bullion prices.

The utilities sector .GSPTTUT, which is often considered a bond proxy, slipped 1.5% as the Canadian 10-year yield CA10YT=RR climbed 0.6%.

Rate-sensitive real estate .GSPTTRE lost 1.5%

Among single stocks, outdoor apparel company Roots ROOT.TO gained 3.2% after strong fourth-quarter results.

On the economic front, minutes from the Federal Reserve's March policy meeting are due later in the day, while the U.S. consumer price inflation report is set for Thursday, which could offer more clues on the inflation trajectory in the world's largest economy.