June 12 (Reuters) - Canada's main stock index fell on Wednesday as crude prices dropped more than 2% on a weaker outlook for demand and a rise in U.S. crude inventories.
The energy sector .SPTTEN dropped 1.2%, the biggest percentage decliner, weighed down by losses in Encana Corp ECA.TO and Nuvista Energy NVA.TO .
* Escalating trade tensions between the world's largest economies also hurt sentiment, with U.S. President Donald Trump saying that he was holding up a trade deal with China and had no interest in moving ahead unless Beijing agrees to four or five major points. Hopes that the U.S. Federal Reserve would take action to counter a slowdown triggered by the trade war have helped Canada's main index rise 1% in June.
* Canada runs a current account deficit and exports many commodities, including oil, so its economy could be hit by a slowdown in the global flow of trade or capital.
* At 9:50 a.m. ET (13:50 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 25.54 points, or 0.16%, at 16,223.22.
* The materials sector .GSPTTMT , which includes precious and base metals miners and fertilizer companies, added 0.2% as prices of safe-haven bet gold rose on heightening trade tensions. GOL/ MET/L
* On the TSX, 117 issues were higher, while 114 issues declined for a 1.03-to-1 ratio favoring gainers, with 18.98 million shares traded.
* The largest percentage gainer on the TSX was Cascades Inc CAS.TO , which jumped 8.1% after TD Securities upgraded its to "buy" from "hold".
* West Fraser Timber Co WFT.TO rose 3.1%, among the top gainers.
* Oil producer Encana Corp ECA.TO fell 3.2%, the most on the TSX, while the second biggest decliner was First Quantum Minerals FM.TO , down 3.2%.
* The most heavily traded shares by volume were Stornoway Diamond Corp SWY.TO , Prometic Life Sciences Inc PLI.TO and Encana.
* The TSX posted one new 52-week high and six new lows.
* Across all Canadian issues, there were five new 52-week highs and 21 new lows, with total volume of 30.76 million shares.