*
TSX ends down 0.4%, at 20,499.31
*
Energy loses 1.6% as oil settles lower
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Materials group declines 1.2%
(Adds details on stocks in paragraphs 8 and 9)
By Johann M Cherian and Fergal Smith
May 10 (Reuters) - Canada's main stock index fell on
Wednesday as a drop in commodity prices weighed on resource
shares, offsetting any benefit from U.S. inflation data that
could encourage the Federal Reserve to pause hiking interest
rates.
The Toronto Stock Exchange's S&P/TSX composite index ended down 86.42 points, or 0.4%, at 20,499.31.
Energy lost 1.6% as oil settled 1.6% lower at $72.56 a
barrel , ending a run of three straight days of gains.
The materials group, which includes precious and base metals
miners and fertilizer companies, declined 1.2% as gold and
copper prices fell.
The U.S. Labor Department's Consumer Price Index (CPI) rose 4.9% in April, compared with expectations of a 5% increase, raising hopes the Fed could move to the sidelines in June. "Today's inflation data confirms expectations that last week's rate hike will prove to be the last, definitely leaving some room for the Fed to pause," said Angelo Kourkafas, investment strategist at Edward Jones Investments. The interest rate-sensitive real estate sector was among the sectors that gained ground. It rose 0.5% and industrials were up 0.8%. Among the major stock movers were Nuvei Corp and Converge Technology Solutions Corp after the companies reported quarterly results. Nuvei's shares fell 14.4%, while shares of Converge Technology Solutions ended 22.8% lower. In contrast, Element Fleet Management Corp shares surged 13.7% after the vehicle fleet operator raised its annual forecast. (Reporting by Johann M Cherian and Vansh Agarwal in Bengaluru; Editing by Shweta Agarwal, Deepa Babington and Jonathan Oatis)
