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TSX ends down nearly 1% at 25,410.71

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Posts its lowest closing level since Nov. 26

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Materials group falls 2.5% as metal prices fall

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Energy declines 1.7%; oil settles 0.4% lower

(Updates at market close)

By Ragini Mathur and Fergal Smith

Dec 12 (Reuters) - Canada's main stock index fell to a

two-week low on Thursday as lower commodity prices weighed on

resource shares and after a supersized interest rate cut by the

Bank of Canada failed to quell unease about domestic economic

prospects.

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

ended down 246.99 points, or 0.96%, at 25,410.71, its

biggest decline since Oct. 31 and lowest closing level since

Nov. 26.

The Bank of Canada's aggressive easing campaign "signals a

weaker-than-expected economy in Canada," said Shiraz Ahmed,

senior portfolio manager and founder of Sartorial Wealth at

Raymond James.

The prospect of U.S. tariffs on Canadian imports is among

the factors "creating a sense of unease in the markets," Ahmed

added.

On Wednesday, the BoC slashed its benchmark interest rate by

50 basis points to 3.25% to address slower economic growth.

Some Canadian premiers are urging Ottawa to respond robustly

to the threat of tariffs from incoming U.S. President Donald

Trump and have highlighted critical minerals and metals as

products the United States relies on, Canada's finance minister

said.

The materials group, which includes fertilizer companies and

metal mining shares, fell 2.5% as gold and copper prices fell.

The price of oil also declined, settling 0.4% lower at

$70.02 a barrel. Energy lost 1.7%.

Three of Canada's biggest oil producers, Suncor Energy ( SU )

, Cenovus Energy ( CVE ) and Imperial Oil ( IMO ),

projected higher production in 2025, betting on resilient demand

for Canadian crude to U.S. and international markets.

Shares of all three fell, with Imperial Oil ( IMO ) down 6.7%.

Heavily weighted financials were also a drag, falling 0.7%.

Utilities was down 0.8% as bond yields climbed after

hotter-than-expected U.S. producer price data.