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Toronto ends down

TORONTO (Reuters) - The Toronto Stock Exchange’s main index ended lower, as strength in energy issues and rosy earnings from companies such as AGF Management were offset by concerns over the US economic outlook.

The S&P/TSX composite index closed down 21.61 points, or 0.2 percent, at 13,197.15.

All but two of the TSX index’s 10 main groups were lower. Shares of oil and gas companies were up 0.9 percent, while consumer staples also edged higher, rising 0.01 percent.

Investors’ spirits were dampened by disappointing weak US durable goods data and comments by US Federal Reserve Chairman Ben Bernanke, who said the central bank continues to focus on battling inflation, while noting that problems in the high-risk subprime mortgage market could delay a housing recovery.

For the most part, the market took Bernanke’s comments as a signal that an interest rate cut is not likely any time soon, said Kate Warne, market strategist at Edward Jones in St. Louis, Missouri.

“I think, overall, what we saw was financials drop in response to worries about slower growth south of the border, and globally,” she said.

“But with oil prices being higher, in response to the uncertainty with Iran, I think the Canadian market basically saw this balance, or this tug-of-war between financials and energy.”

US crude surged $1.15 or 1.8 percent to $64.08 a barrel, its highest level in more than six months. The rise came on a surprise draw on US crude stocks and amid continued tensions over Iran’s holding of 15 British navy personnel and rumours — subsequently denied by the United States — that Iran had fired on a US vessel.

Suncor Energy climbed C$3.33, or 3.9 percent, to C$89.17, while Canadian Natural Resources rose C$1.24, or two percent, to C$64.09.