CANADA STOCKS-TSX drops on rate concerns, fall in energy shares

* TSX down 64.92 points, or 0.42 percent, at 15,471.89
    * Eight of the 10 main index sectors decline
    * Suncor, Talisman follow oil price lower

    By John Tilak
    TORONTO, Sept 10 (Reuters) - Canada's main stock index
declined on Wednesday, weighed down by worries that U.S.
interest rates might rise and by a drop in energy shares spurred
by lower oil prices.
    Concerns about the Scottish referendum on independence,
which is set for next week, further dampened the mood.
    Investor speculation about when the U.S. Federal Reserve
will raise interest rates grew more intense ahead of a Fed
meeting next week, after which the U.S. central bank is expected
to shed more light on its policy outlook.
    Oil prices, which have been slipping for the past three
months, were hit again by worries over increasing supply and
sluggish demand. 
    "A sense of heightened geopolitical risk is contributing to
invest nervousness," said Elvis Picardo, strategist and vice
president of research at Global Securities in Vancouver.
    "We might be in for a bout of volatility in the short term,"
he added.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 64.92 points, or 0.42 percent, at
15,471.89. Eight of the 10 main sectors on the index were in the
    Shares of energy producers dropped 0.6 percent, with Suncor
Energy Inc losing 1.1 percent to C$43.18, and Talisman
Energy Inc shedding 1.6 percent to C$10.77.
    The industrial sector declined 0.7 percent. Canadian Pacific
Railway Ltd fell 1.2 percent to C$223.59, and Canadian
National Railway Co slipped 1 percent to C$79.98.
    ($1=$1.10 Canadian)

 (Editing by Peter Galloway)