• TSX ends down 1%
  • Technology falls nearly 3%
  • Industrials decline 2.4%
  • Energy gains 1.3%; oil settles 1.2% higher

May 23 (Reuters) - Canada's main stock index fell on Tuesday to its lowest closing level in nearly eight weeks, including losses for technology and industrial shares, as investors worried about U.S. debt ceiling talks and awaited results from the country's major banks.

The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) ended down 205.05 points, or 1%, at 20,146.01, its lowest closing level since March 31.

Wall Street also lost ground as deadlocked U.S. debt ceiling talks kept investors jittery on prospects of an unprecedented government default.

Canada's major banks are expected to report a rise in bad debt provisions and highlight risks from commercial property loans when they report earnings, beginning on Wednesday.

"Investors may look to the results for insights into the state of the Canadian economy, and into how much of an impact Canadian interest rate increases over the last year have had on the Canadian financial system," Colin Cieszynski, chief market strategist at SIA Wealth Management, said in a note.

"Comments on whether the recent crisis in U.S. regional banking may have had on their international operations may be scrutinized."

Financials account for nearly 30% of the Toronto market's weighting. The sector ended 0.2% lower, while technology fell nearly 3% as bond yields climbed.

Industrials lost 2.4% and the materials group, which includes precious and base metals miners and fertilizer companies, was down 2%.

Helping to limit the TSX's decline was a gain of 1.3% for the energy sector. In a boost for energy, oil futures settled 1.2% higher at $72.91 as traders weighed the prospect of further OPEC+ output cuts.

Reporting by Johann M Cherian in Bengaluru; Editing by Rashmi Aich

Our Standards: The Thomson Reuters Trust Principles.

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