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TSX ends down 0.63% at 21,978.18

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Materials sector drops nearly 4%

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Energy falls 2.06%; oil settles down 1.31%

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Consumer staples gains 0.77%

(Updates at market close)

By Fergal Smith

June 4 (Reuters) - Canada's main stock index fell on

Tuesday to a near one-week low as signs of faltering global

economic growth pressured commodity-linked stocks, and ahead of

an expected move this week by the Bank of Canada to begin

cutting interest rates.

The Toronto Stock Exchange's S&P/TSX composite index

ended down 138.51 points, or 0.63%, at 21,978.18, its

lowest closing level since last Wednesday.

U.S. job openings fell in April to the lowest in more than

three years in a sign that labor market conditions are

softening. It follows data on Monday that showed a slowdown in

U.S. manufacturing activity for a second straight month in May.

"Any hint of weakness in the U.S. or the global economy

doesn't bode well for commodity prices," said Elvis Picardo, a

portfolio manager at Luft Financial, iA Private Wealth, adding

that after recent gains for resource shares the decline in

commodity prices has been "used as an excuse to take some

profits off the table."

The materials sector, which includes metal miners

and fertilizer companies, fell nearly 4% as gold and

copper prices declined.

Energy also lost ground, falling 2.06%, as the

price of oil settled 1.31% lower at &77.52 a barrel.

Helping to limit the TSX's decline was a gain for the

defensively-orientated consumer staples sector. It

rose 0.77%, while the utilities group, which includes

high-dividend paying stocks that could particularly benefit from

rate cuts, added 0.23%.

Investors see a roughly 80% chance that the Bank of Canada

would cut rates on Wednesday for the first time since March

2020.

"A lot will hinge on the Bank of Canada's rate decision

tomorrow. It is shaping up to be a pretty pivotal day," Picardo

said.