TSX posts biggest decline in six months as global trade tensions rise

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TSX ends down 1.4% at 29,850.89

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Posts biggest decline since April

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Technology drops 4.3%, with Shopify down 8%

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Energy loses 3.3% as oil settles 4.2% lower

(Updates at market close)

By Fergal Smith

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 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 dropped 4.3%, with shares of e-commerce company Shopify Inc dropping 8%.

Energy 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 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)