CANADA STOCKS-TSX falls as losses in materials shares eclipse energy gains

By Darshan Kumar R

Sept 24 (Reuters) - Canada's main stock index inched lower on Thursday as falling metal prices dragged materials shares, while a jump in oil prices boosted energy stocks but kept risk-taking in check as inflationary woes persisted.

The Toronto Stock Exchange's S&P/TSX Composite Index .GSPTSE was down 0.2% at 35,695.2 points at 10:12 a.m. ET (1412 GMT).

• Materials .GSPTTMT dropped 1.9%; shares of gold and silver miners led the declines, tracking lower silver and gold prices. GOL/

• Helping offset losses was the energy .SPTTEN sector, which climbed 1.7% as crude oil prices jumped more than 2%.

• Oil prices rose as little progress was made in diplomatic talks between the US and Iran, while uncertainty over a potential US ban on diesel exports added to supply concerns. O/R

• Global government bond yields stayed elevated as higher crude prices aggravated inflation worries, prompting traders to increase bets on future rate hikes from central banks including the US Federal Reserve.

• "Higher yields are becoming a more meaningful headwind for stocks, while the focus remains on oil prices and bond-market volatility," said Angelo Kourkafas, investment strategist at Edward Jones Investments.

• The benchmark US 10-year Treasury yield stayed above 5% while its Canadian equivalent was last at 3.92%.

• The yields, however, were off their session highs, offering some support.

• Heavyweight financial stocks .SPTTFS gained 0.1%, with shares of banks including TD Bank TD.TO and Royal Bank of Canada RY.TO trading slightly higher.

• On the economic data front, Canadian monthly retail sales fell by 0.7% in July, marginally better than an average of analysts' expectations.

• In company news, Kinross Gold K.TO shed 9.8% after the miner lowered its 2026 and 2027 attributable production guidance.

• BlackBerry BB.TO shares fell 1.6% despite the company raising its full-year revenue forecast.