TORONTO (Reuters) - Toronto's main stock index ended sharply lower in volatile trading yesterday, after sluggish global manufacturing data raised concerns about the pace of economic recovery, punishing oil prices and the TSX's powerhouse energy sector.

Energy shares sank 3.3 percent, with Suncor Energy Inc , the country's biggest oil producer, shedding 1.9 percent to C$31.89. EnCana Corp, Canada's largest natural gas producer, fell 3.2 percent to C$32.18.

The Toronto Stock Exchange's S&P/TSX composite index ended 191.02 points, or 1.62 percent, lower at 11,571.97. The index swung between positive and negative for much of the day.

Data showed manufacturing growth slowed in the euro zone and China, but there was some relief in the United States, where there was scant evidence of an impending slump.

Still, oil fell nearly two percent to below $73 a barrel in choppy trade.

"There's a great deal of nervousness about global growth," said Elvis Picardo, analyst and strategist at Global Securities in Vancouver,

"You see that nervousness manifest itself in the volatility in crude oil prices, and because of the volatility in oil prices, you're seeing energy stocks bounce around as well."

Financial issues see-sawed on both sides of break-even throughout the day before settling 0.5 percent lower.

Bank of Nova Scotia, however, rose 2.6 percent to C$49.52 after reporting stellar quarterly results.

"Best results out of any of the Canadian banks. Blew the doors off even with a significant currency impact," said Barry Schwartz, vice-president and portfolio manager at Baskin Financial Services.

Royal Bank of Canada, the country's biggest lender, fell 1.7 percent to C$54.20, extending its decline after posting earnings last week that fell short of high market expectations. "After the sell-off in May, banks are now trading at quite a reasonable valuation. I don't know what people are worried about," Schwartz said.

In an anticipated move, the Bank of Canada raised its key interest rate to 0.5 percent from 0.25 percent yesterday, making Canada the first Group of Seven country to raise rates since the start of the recession. But the bank said the European debt crisis made its next rate move highly unpredictable.