May 9 (Reuters) - Canada's main stock index fell on Tuesday, weighed down by financial stocks after Barclays downgraded several banks, while investors remained cautious ahead of U.S. inflation data due on Wednesday.
At 10:34 a.m. ET (1434 GMT), the Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) was down 74.34 points, or 0.36%, at 20,510.81.
Heavyweight financial index (.SPTTFS) fell 1.0% after Barclays downgraded three major Canadian banks. Royal Bank of Canada (RY.TO) fell 1.7% on Barclays' double downgrade to "underweight" from "overweight".
Bank of Nova Scotia (BNS.TO) and Toronto-Dominion Bank (TD.TO) fell 2.7% and 1.4%, respectively, on the brokerage's rating cuts.
Investors will parse the U.S. April consumer price inflation (CPI) data for signs on Federal Reserve's policy outlook in what market expects to be the end in a historic series of interest rate hikes.
"Coming into this earnings season, the bar was set pretty low both in Canada and in the U.S.," said Allan Small, senior investment advisor at Allan Small Financial Group.
"Overall earnings season has been very good, beating a low bar but still not the number one driver of market movements, that's more to do with the Fed and interest rate policy."
Canadian earnings season is to pick-up pace this week.
Pet Valu Holdings (PET.TO) fell 4.8% after the retailer reported a decline in first-quarter profit versus a year earlier.
Finning International (FTT.TO) gained 4.5% after the caterpillar equipment dealer posted better-than-expected first-quarter results.
Canada's technology sector (.SPTTTK) slipped 0.1%, dragged down by a 1.2% decline in Shopify (SHOP.TO).
