CANADA STOCKS-TSX ends lower as oil price drop pressures energy shares

Updates at market close

By Ragini Mathur and Fergal Smith

Feb 12 (Reuters) - Canada's main stock index fell on Wednesday as a drop in oil prices weighed on energy shares and hotter-than-expected U.S. inflation data crimped expectations for additional interest rate cuts by the Federal Reserve.

The S&P/TSX composite index .GSPTSE ended down 68.72 points, or 0.3%, at 25,563.11, its second straight day of declines.

U.S. consumer prices increased by the most in nearly 1-1/2 years in January, reinforcing the Fed's message that it was in no rush to resume cutting interest rates amid growing uncertainty over the economy.

"Inflation is not behaving in a way that suggests the Fed will cut rates and that is incrementally bad news for the markets for now," said Angelo Kourkafas, investment strategist at Edward Jones Investments.

The energy sector fell 2.2% as the price of oil CLc1 settled 2.7% lower at $71.37 a barrel.

U.S. President Donald Trump took the first big step toward diplomacy over the war in Ukraine he has promised to end, a war that has supported oil prices on concerns about global supplies.

Consumer discretionary lost 1.1%, while real estate ended 1% lower as bond yields climbed. The Canadian 10-year yield was up 9.4 basis points at 3.192%.

Shares of TerraVest Industries Inc TVK.TO fell 10.4% after quarterly revenue for the manufacturer of home heating products fell short of analysts' estimates.

The materials group was a bright spot, rising 1.2%, as gold XAU= and copper HGc1 prices rose. Barrick Gold Corp ABX.TO shares added 6.3% after the mining company announced a share buyback program and beat analysts' estimates for fourth-quarter profit.

Shares of BlackBerry Ltd BB.TO jumped 10.2%, touching the highest since August 2022.