UPDATE 3-Toronto stocks falter as oils drop, CP Rail sags
(Adds details, quotes)
* TSX ends lower but trims earlier losses
* Resource shares retreat as commodity prices fall
* CP Rail drops after it cuts earnings guidance
By Leah Schnurr
TORONTO, July 22 (Reuters) - The Toronto Stock Exchange's main index finished lower on Tuesday, but trimmed earlier steep losses as a rise by financials offset a drop in resource issues, which were hit by tumbling commodity prices.
The resource sectors led the downside and helped take the index down more than 1 percent in the morning, with energy shares hit by a six-week low for oil prices as fears over a tropical storm in the Gulf of Mexico eased.
The energy group fell 2.5 percent, with Canadian Natural Resources CNQ.TO down 4.2 percent, and EnCana Corp ECA.TO off 3.6 percent.
A decline in gold miners helped knock the materials sector down 2.2 percent, as the price of bullion was sharply lower due to weaker oil prices and a stronger U.S. dollar. Continued...