CANADA STOCKS-TSX ends lower as oil prices slide on output hikes

By Fergal Smith

May 5 (Reuters) - Canada's main stock index fell on Monday as a drop in oil prices weighed on energy shares and investors reduced some risk ahead of a Federal Reserve interest rate decision this week.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended down 77.99 points, or 0.3%, at 24,953.52, after posting on Friday its highest closing level in one month.

The S&P 500 also closed down, snapping its longest streak of gains in 20 years, as investors assessed U.S. President Donald Trump's latest tariff announcement ahead of the Fed's monetary policy decision on Wednesday.

Some of the move lower is due to profit-taking, said Colin Cieszynski, chief market strategist at SIA Wealth Management.

"So far expectations remain that the Fed is not going to cut interests ... The market keeps asking for liquidity and not getting it."

Data showed that Canada's services economy contracted for a fifth straight month in April as uncertainty around trade policy and the country's general election weighed on activity.

"We've had this big run for almost a month now in the markets but the reality is nothing (on the economic outlook) has really improved," Cieszynski said.

The energy sector fell 2.7% as the price of oil settled nearly 2% lower at $57.13 a barrel after OPEC+ decided to expedite its output hikes.

Industrials also lost ground, falling 0.7%, as railroad shares declined.

The materials sector, which includes metal mining shares, was a bright spot, adding 1.6%, as the price of gold XAU= rebounded above $3,300 per ounce.

Sunoco LP SUN.N will buy Parkland Corp PKI.TO in a deal valued at about $9.1 billion, including debt, the U.S. fuel supplier said. Shares of Parkland ended 5.5% higher.