TORONTO (Bloomberg) - Canadian stocks declined the most in two weeks as crude oil and industrial metals prices fell on concern that a recovery in the global economy will stall, curbing demand for raw materials.

Natural-gas producer Canadian Natural Resources Ltd. lost 4.1 percent as natural gas futures declined in New York, while Suncor Energy Inc., the world's second-biggest oil-sands producer, fell to the lowest price since April 30. Kinross Gold Corp., Canada's third-largest gold producer, dropped 3.3 percent after bullion slipped and Scotia Capital Inc. cut the stock to "sector perform" from "sector outperform."

"There is nowhere to hide right now in Canada," said Gareth Watson, director of the portfolio advisory group at Scotia Capital Inc. in Toronto, which manages about C$60 billion. "It's just recognition that we had a heck of a lot of momentum and investors are finding it hard to justify with the current economic indicators. And of course our markets are heavily weighted toward energy."

The Standard & Poor's/TSX Composite Index fell 255.67 points, or 2.5 percent, to 10,027.43, the steepest decline since June 22. Since rising to an eight- month high on June 11, the S&P/TSX has lost 6.4 percent as Bank of Canada and World Bank both said the global recession may be worse than previously estimated and US unemployment rose to a 26-year high. Canada's economy will contract by 2.4 percent this year, the Parliamentary Budget Office reported to lawmakers yesterday.

Crude oil, Canada's largest export, fell to a five-week low, while nickel and copper declined. The Reuters/Jefferies CRB Index of 19 raw materials retreated 2.3 percent. Commodities account for more than half of Canada's export revenue.

Declining stocks in the S&P/TSX today outnumbered those that gained by 177 to 31. The energy and materials groups fell the most on the S&P/TSX, sliding more than 3.4 percent each. Potash Corp. of Saskatchewan Inc., the world's biggest producer of the fertilizer, slumped 2.4 percent to C$110.60.

Crude oil for August delivery declined $2.68, or four percent, to $64.05 a barrel on the New York Mercantile Exchange, the lowest settlement since May 27. Canadian Natural Resources slipped C$2.38 to C$55.90.

Suncor, the world's second-biggest oil-sands producer, slipped 6.1 percent to C$30.85. EnCana Corp., Canada's biggest natural-gas producer, declined 4.2 percent to C$53.05. The company was targeted by a sixth pipeline bombing in less than a year. The explosion on July 4 occurred at a site near Dawson Creek, Royal Canadian Mounted Police said.

Gold producers declined with the precious metal as the US dollar strengthened against half of the 16 major currencies. Gold, which typically moves inversely to the dollar, fell 0.7 percent to $924.30.

Kinross lost 73 cents to C$21.21, while Barrick Gold Corp., the international gold company with mines in the US and Africa, fell 3.6 percent to C$38.29.