TORONTO, Oct 10 (Reuters) - Canada's main stock index posted on Friday its biggest decline since April as increased trade tensions between the United States and China provided a catalyst for profit-taking, and despite stronger-than-expected domestic jobs data.
The S&P/TSX composite index (.GSPTSE), ended down 414.09 points, or 1.4%, at 29,850.89, its lowest closing level since September 26. For the week, the index was down 2%.
Wall Street posted even sharper declines on Friday after U.S. President Donald Trump unleashed a string of bellicose threats against China in retaliation for Beijing tightening rare earth restrictions.
"It is a reminder that trade policy uncertainty remains an important driver for markets," said Angelo Kourkafas, senior global investment strategist at Edward Jones.
"There is a reason for some profit taking after a very strong run in almost a straight line, and as we all know markets rarely move in a straight line."
The TSX has advanced 20.7% since the start of the year and posted a record closing high as recently as Monday.
"We are seeing those higher valuation parts of the market that are leading us to the downside today," Kourkafas said.
The high-flying technology sector (.SPTTTK), dropped 4.3%, with shares of e-commerce company Shopify Inc (SHOP.TO), dropping 8%.
Energy (.SPTTEN), was down 3.3%, as the price of oil settled 4.2% lower at $58.90 a barrel on growing confidence that the Gaza agreement between Israel and Hamas was taking hold.
Canada's economy added 60,400 jobs in September, easily eclipsing forecasts of a 5,000 increase.
The data led to investors reducing bets on a Bank of Canada interest rate cut this month. Still, Canada's 10-year yield eased 4.3 basis points to 3.169% as U.S. Treasury yields moved sharply lower.
The decline in long-term borrowing costs helped the utilities sector, which added 0.9%. Consumer staples, another defensive sector, was up 1.1%.
Aritzia Inc (ATZ.TO), was a standout. The clothing retailer's shares jumped 8.1% after the company's quarterly results beat estimates.
Reporting by Fergal Smith in Toronto and Ragini Mathur in Bengaluru; Editing by Vijay Kishore and Alistair Bell
