CANADA STOCKS-TSX pulls back from record high as bank earnings hit financial stocks

By Sanchayaita Roy, Fergal Smith

May 29 (Reuters) - Canada's main stock index edged lower on Thursday, pulling back from a record high, as mixed bank earnings weighed on financials and after a boost from a U.S. court ruling on tariffs that proved short-lived.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended down 72.89 points, or 0.3%, at 26,210.56 after posting on Wednesday a record closing high.

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

Royal Bank of Canada RY.TO missed analysts' quarterly profit estimates as it set aside larger than expected sums of money for potential loan defaults in an uncertain economy brought on by U.S. tariffs. Shares of Canada's largest bank fell 3.5%, while Canadian Imperial Bank of Commerce CM.TO shares posted a smaller decline, ending 0.3% lower.

CIBC topped estimates as its earnings from the capital markets unit rose 20%.

The financials sector fell 0.6% and consumer staples was down 0.8% but not all sectors lost ground.

Real estate and utilities rose 0.9% and 0.1% respectively as long-term borrowing costs fell. The Canadian 10-year yield CA10YT=RR eased 3.4 basis points to 3.212%.

A federal appeals court reinstated the most sweeping of U.S. President Donald Trump's tariffs, a day after a trade court had ruled that Trump had exceeded his authority in imposing the duties and had ordered an immediate block on them.

Shares of powersports product manufacturer BRP Inc. DOO.TO have been volatile since the start of the trade war. They climbed 12.7% on Thursday after the company reported first-quarter results that beat estimates.