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TSX ends down 0.3% at 23,037.44

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Decline follows eight straight days of gains

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Energy falls 2.2% as oil hits a near 2-week low

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Metal miners climb; gold notches a record high

(Updates at market close)

By Fergal Smith

Aug 20 (Reuters) - Canada's main stock index fell for

the first time in nine trading days on Tuesday as lower oil

prices weighed on energy shares and ahead of a potential

railroad strike in Canada that could hurt the North American

economy.

The S&P/TSX composite index ended down 78.95

points, or 0.3%, at 23,037.44, pulling back from a record

closing high the previous day.

"We've had such a bull market for a number of weeks now, a

pause is not unexpected," said Michael Sprung, president at

Sprung Investment Management. "Everybody is really counting on

(interest) rate cuts coming soon from the U.S. side."

Federal Reserve Chair Jerome Powell is expected to pin down

the view that the central bank is about to start lowering

borrowing costs when he speaks on Friday at the Kansas City

Fed's Jackson Hole conference.

The TSX is set to extend its record-setting rally in the

coming months and through 2025 as lower borrowing costs offset

the potential drag on corporate earnings from slower economic

activity, a Reuters poll found.

Railroad operators Canadian Pacific Kansas City ( CP ) and

Canadian National Railway ( CNI ) are bracing for a work

stoppage, which could start as early as Thursday, as talks to

negotiate a new labor contract are yet to reach an agreement.

"If there's no resolution by tomorrow we could have some

more negative vibes in the market through the end of the week,"

Sprung said.

The energy sector was down 2.2% as oil fell to a near

two-week low on easing concerns about Middle East supply. U.S.

crude oil futures settled 0.4% lower at $74.04 a barrel.

Eight of 10 major sectors ended lower. The materials group,

which includes fertilizer companies and metal miners, was one of

the exceptions, gaining 0.4% as the price of gold climbed

to an all-time high.