CANADA STOCKS-TSX retreats from record high as bank earnings drag financial stocks

By Sanchayaita Roy

May 29 (Reuters) - Canada's main stock index slipped on Thursday, pulling back from a record high hit in the previous session, as investors weighed weaker bank earnings.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 0.3% at 26,198.18 points.

The heavyweight financial .SPTTFS sector slipped 0.8%, led by 7.2% fall in EQB's EQB.TO shares after the lender reported second-quarter results.

Canada's No.1 lender, Royal Bank of Canada, RY.TO fell 3.1% after it missed quarterly profit estimates.

Canadian Imperial Bank of Commerce CM.TO reported a rise in second-quarter profit, but traded nearly flat.

Conversely, rate sensitive real estate .GSPTTRE rose 1.1%.

The index had closed at another record high on Wednesday as investors cheered positive earnings from the Bank of Montreal, Canada's third largest lender, and National Bank of Canada.

"We've seen mixed reports out of the Canadian banks. The wealth and capital markets divisions are doing very well whereas provisions for credit losses have basically increased across the board," said Josh Sheluk, portfolio manager at Verecan Capital Management.

On Wednesday, the U.S. Court of International Trade ruled that Trump overstepped his authority by imposing duties on trading partners, invalidating most of his tariffs since January. However, the ruling did not address some industry-specific tariffs on automobiles, steel, and aluminum.

U.S. White House economic adviser, Kevin Hassett, said on Thursday that three trade deals were nearly done and he expected more despite the judgment.

Later this week, focus will be on Canada's March and first-quarter GDP figures coming out on Friday, that could reveal the impact of U.S. tariff on the economy and influence the Bank of Canada's interest rate decision next week.