June 3 (Reuters) - Canada's main stock index pulled back on Wednesday from a record high as tensions in the Middle East rose, with technology and metal-mining shares leading the declines.
The Toronto Stock Exchange's S&P/TSX Composite Index ended down 367.92 points, or 1.1%, at 34,801.54, after notching a record closing high on Tuesday.
o Wall Street stocks also pulled back from record highs as the U.S. and Iran traded a new round of air strikes, the latest test of a shaky ceasefire.
o "It's a tail risk and markets are pricing it as a tail risk," said Josh Sheluk, portfolio manager at Verecan Capital Management. "If markets thought escalation was the highest probability outcome, then they'd probably be a lot lower right now."
o Investors worry that elevated oil prices due to the conflict will raise inflation pressures globally. The price of oil settled 2.4% higher at $96.02 a barrel.
o Adding to global economic headwinds, the Trump administration has proposed new tariffs of up to 12.5% on imports from 60 economies after determining they had failed to curb trade in goods made with forced labor, an assertion that was rejected by U.S. trading partners.
o Technology shares fell 3.5%, with shares of Constellation Software Inc down 4.7%.
o Shopify Inc said on Tuesday its board had approved an additional $3 billion share buyback program. Shares of the e-commerce company ended 3% lower.
o The materials group, which includes metal-mining shares, was down 3.2% as gold and copper prices fell.
o Heavily weighted financials lost 0.6% and industrials ended 0.7% lower.
o Four of the 10 major sectors ended higher, including energy and consumer staples, which added 1.2% and 1.5% respectively.
(Reporting by Fergal Smith in Toronto and Tharuniyaa Lakshmi in Bengaluru; Editing by Cynthia Osterman)
By Tharuniyaa Lakshmi and Fergal Smith
