• TSX ends down 0.5% at 22,265.05
• Industrials decline 2.1%
• Financials were down 1.1%
• Scotiabank falls 0.8% despite earnings beat

May 28 (Reuters) - Canada's main stock index fell on Tuesday, including declines for industrial and financial shares, as worries that interest rates would stay elevated for longer than previously thought prompted investors to pocket some of this month's gains.

The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) New Tab, opens new tab ended down 108.33 points, or 0.5%, at 22,265.05. Since the start of May, the index has advanced 2.5%.

"It does feel like the market is starting to give back some of that big gain that we had throughout the month of May," said Greg Taylor, a portfolio manager at Purpose Investments. "We are starting to get more concern that the Fed is not going to cut anywhere close to the extent that they had (projected)."

Wall Street's major indexes were mixed as investors awaited U.S. inflation data this week that could sway expectations for Federal Reserve rate cuts and as U.S. trading moved to a shorter settlement cycle of one day for securities transactions. Canada transitioned on Monday.

The Toronto market's industrials sector (.GSPTTIN) New Tab, opens new tab fell 2.1% as railroad stocks lost ground, while heavily weighed financials ended 1.1% lower.

Bank of Nova Scotia (BNS.TO) New Tab, opens new tab reported better-than-expected quarterly earnings, boosted by gains in its capital market business, rises in brokerage revenue in Canada and mutual fund fees overseas. Still, its shares were down 0.8%.

Energy shares (.SPTTEN) New Tab, opens new tab were a bright spot, rising 1.4%, as the price of oil settled 2.7% higher at $79.83 a barrel on the expectation that OPEC+ will maintain crude supply curbs at its June 2 meeting.

The materials group (.GSPTTMT) New Tab, opens new tab, which includes metal miners and fertilizer companies, also rose. It was up 0.9% as gold and copper prices climbed.

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https://www.reuters.com/markets/tsx-futures-dip-precious-metals-slide-2024-05-28/