UPDATE 4-Toronto stocks sideswiped by falling commodities

Tue Jun 3, 2008 5:45pm EDT
 
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(Adds details, quotes)

* Index gives up early gains to end 0.6 percent lower

* Energy shares lead retreat as oil price tumbles

* Lululemon falls after cutting profit forecast

By Leah Schnurr

TORONTO, June 3 (Reuters) - The Toronto Stock Exchange's main index erased early gains to close lower after a roller-coaster session on Tuesday as energy and gold-mining issues fell as commodity prices dropped.

After climbing more than 100 points, the Toronto benchmark turned sharply lower as the energy sector retreated with slumping oil prices.

Crude gave way after U.S. Federal Reserve Chairman Ben Bernanke warned about the inflationary risk of a weak U.S. dollar. Those remarks gave a boost to the greenback and knocked oil down $3.45, or 2.7 percent, to $124.31 a barrel.

Suncor Energy (SU.TO: Quote) fell C$2.18, or 3.2 percent, to C$66.60, while Canadian Oil Sands Trust COS_u.TO slid C$1.55, or 3 percent, to C$49.60. The sector was down 1.4 percent.   Continued...