TORONTO, June 12 (Reuters) - Stifel Financial ( SF ) on

Wednesday said it was closing its office in Calgary, the oil and

gas capital of Canada, in response to current economic

uncertainties.

"After a thorough evaluation, we have made the difficult

decision to consolidate some operations in Canada, which

includes closing our Calgary office," a spokesperson said.

"Current market conditions and operations costs necessitate this

action."

The St. Louis-based investment bank said it also suspended

equity research coverage of Canadian banks and financial

services companies due to analyst departure at Keefe, Bruyette &

Woods (KBW), which comes as part of a broader strategic move

that Stifel and KBW are making in Canada.

The move comes as U.S. investment banking peer Jefferies

opened offices in Toronto and Calgary, setting up an

investment banking and capital markets unit in Canada, sticking

to its plans to pursue an international expansion. The bank has

over 50 employees in Canada across investment banking, equity

research and sales and trading.

Stifel said it would continue to service clients at its

Montreal, Toronto and Vancouver offices.