CANADA STOCKS-TSX inches lower; investors assess new US tariff proposals

By Twesha Dikshit and Sukriti Gupta

July 8 (Reuters) - Canada's main stock index edged lower on Tuesday, dragged by heavyweight mining shares, while investors assessed U.S. President Donald Trump's new tariff proposals for several trading partners.

The commodity heavy S&P/TSX composite index .GSPTSE was down 0.2% at 26,959.65 points.

Trump told 14 nations on Monday, including Japan and South Korea, that they would face sharply higher tariffs from August 1, while leaving room for negotiations.

On the index, mining stocks .GSPTTMT fell 2.4%, tracking a fall in gold prices.

Gold miners were among the top decliners, with SSR Mining SSRM.TO and Orla Mining OLA.TO falling 6.1% and 6.5%, respectively.

But energy .SPTTEN shares advanced 1%, with Baytex Energy BTE.TO rising 6.1% to the top of the index. Industrial stocks .GSPTTIN gained 0.7%.

An index of communication .GSPTTTS stocks rose 1.8%; telecom firm BCE BCE.TO gained 2.9%.

"The TSX is in a holding pattern this week, consolidating recent gains after a strong run. While the index holds steady, momentum is building, which is a positive technical sign for continued upside," said Brandon Michael, senior research analyst at ABC Funds.

Among individual stocks, logistics-provider Mullen Group MTL.TO slipped 1.1% after brokerage CIBC downgraded company's rating.

Business jet maker Bombardier's BBDb.TO shares gained 1.5% after CIBC raised its target price.

On the data front, Ivey PMI data showed that Canada's economic activity for June expanded at its fastest pace in four months with price increases accelerating.

In other news, Canada's finance minister has asked all ministries to find savings, assess spending on programs, cut down on work duplication and look to reallocate funds from other programs to priority projects, a government official said on Monday.