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TSX ends down 0.6% at 21,829.85

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Communication services index falls 1.5%

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Energy rises 0.9%; oil settles at 4-month high

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Lithium Americas ( LAC ) rises 5.6% on US DOE loan

(Updates at market close)

By Fergal Smith

March 14 (Reuters) - Canada's main stock index fell on

Thursday, consolidating some recent gains, as

hotter-than-expected U.S. inflation data pressured stocks that

are sensitive to interest rates.

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

ended down 140.26 points, or 0.6%, at 21,829.85, a day

after posting its highest closing level since April 2022.

U.S. stocks also fell as a jump in producer prices left

investors wondering if the Federal Reserve might wait longer

than expected to cut interest rates. The U.S. central bank is

due to make a policy decision next Wednesday.

"Investors are recalibrating their interest rate

expectations following today's inflation read," said Brandon

Michael, senior investment analyst at ABC Funds.

"We believe today's weakness in Canadian stocks represents a

consolidation period as the market digests significant gains

accrued over the past month."

The Toronto market has rallied about 6% since mid-February.

Interest-rate sensitive stocks were among the biggest

decliners, with the utilities sector falling 0.9% and

communication services ending 1.5% lower.

Heavily weighted financials lost 0.8% and the materials

group, which includes precious and base metals miners and

fertilizer companies, was down 1% as gold gave back some recent

gains.

Energy rose 0.9% as the price of oil settled up 1.7% at

$85.42 a barrel, a four-month high, after the International

Energy Agency raised its view on oil demand growth this year.

Shares of Lithium Americas ( LAC ) rose 5.6% after the U.S.

Department of Energy granted the miner a conditional commitment

loan of $2.26 billion to finance the construction of its Thacker

Pass project in Nevada.