Canada's main stock index hit a two-week low in Friday, extending its pullback from a record high in a broad-based sell-off that included losses for its heavyweight energy and financial services groups as oil prices fell.

At 10:50 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was down 167.07 points, or 1.06 per cent, at 15,614.13. All of the index's 10 main groups were lower.

For the week, the index was on track to fall 1.4 percent, the most since before the U.S. presidential election in early November, while stocks on Wall Street also declined on Friday as investors assessed whether the "Trump rally" had gone too far too soon.

Royal Bank of Canada (RY.TO) reported quarterly earnings of more than $3 billion for the first time, beating market forecasts.

Still, its shares fell 0.9 per cent to $97.38, and the financial services sector retreated 0.8 per cent.

Auto parts maker Magna International Inc (MG.TO) tumbled 5.5 per cent to $55.92 after it reported a lower-than-expected quarterly profit as costs rose.

Husky Energy Inc (HSE.TO) fell 2.5 per cent to $15.99 even as the oil producer reported a smaller-than-expected quarterly loss.

The energy group tumbled more than 2 per cent as oil prices fell, with Suncor Energy Inc (SU.TO) declining 2.7 per cent to $41.69.

U.S. crude CLc1 prices were down 0.50 per cent at $54.18 a barrel after inventories rose for the seventh week. 

In an interview with Reuters on Thursday, U.S. President Donald Trump spoke favorably about a potentially export-boosting border adjustment tax being pushed by Republicans in the U.S. Congress.

Investors worry that the border tax would reduce the competitiveness of Canada's oil exports.

Canada's MacDonald Dettwiler and Associates Ltd (MDA.TO) said it would buy U.S.-based DigitalGlobe Inc (DGI.N) for about $3.10 billion to strengthen its position in the satellite imagery market.

Its shares tumbled 5.1 per cent to $65.50, while the industrials group declined 0.8 per cent.

The materials group, which includes precious and base metal miners and fertilizer companies, fell 0.4 per cent. Its losses were cushioned by gains for gold stocks as the metal climbed to its highest in 3-1/2 months.

Gold futures rose 0.2 per cent to $1,252.6 an ounce, and copper prices advanced 1.5 per cent to $5,949.5 a tonne. 

Canada's annual inflation rate jumped to a stronger-than-expected 2.1 per cent in January, its highest in more than two years.