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CANADA STOCKS-TSX dips for 2nd day as investors brace for more rate hikes

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(New throughout, updates prices, market activity and comments)

* TSX ends down 15.62 points, or 0.1%%, at 20,713.72

* Bank of Canada hikes by half a percentage point

* Technology falls 2.1%

* Energy rises 1.9%; oil settles 0.5% higher

By Fergal Smith

TORONTO, June 1 (Reuters) - Canada's main stock index edged lower on Wednesday as the Bank of Canada opened the door to a more aggressive pace of tightening, with weakness in the technology sector offsetting gains for energy and industrials.

The Toronto Stock Exchange's S&P/TSX composite index ended down 15.62 points, or 0.1%%, at 20,713.72. It was the second straight decline for the index after it posted on Monday its highest closing level in nearly four weeks.

U.S. stocks fell more sharply, with investors betting the latest economic data would do nothing to push the Federal Reserve off track from its aggressive interest rate hiking cycle.

The Bank of Canada said it was prepared to act "more forcefully" if needed to tame inflation, even as it went ahead with a historic second consecutive half-percentage-point rate increase.

"The tightening cycle is not nearly finished yet and so I think that's resulting in the same kind of sector performance that we've seen for a lot of 2022," said Mike Archibald, a portfolio manager at AGF Investments.

The Toronto market has a 28% weighting in resource shares, which offer a hedge of sorts against inflation pressures.

Energy and materials shares have performed strongly since the start of the year, while technology, which is sensitive to higher interest rates, has been one of the major laggards.

"The action today is being driven by hard assets," Archibald added. "If inflation stays persistent, areas like gold and copper and energy, which are all doing well today, are going to continue to do well."

The Toronto market's energy sector rose 1.9% as the price of oil settled 0.5% higher at $115.26 a barrel.

The industrials group was up 1% as shares of CAE Inc climbed 7.7% after reporting quarterly results that beat estimates.

Technology ended 2.1% lower. (Reporting by Fergal Smith; Additional reporting by Amal S in Bengaluru; Editing by David Gregorio)