Toronto stocks ended lower for a third straight session on Tuesday, as resource issues retreated and BCE shares fell.

The S&P/TSX composite index closed down 177.98 points, or 1.29%, at 13,663.88.

The benchmark index has shed more than 430 points over the past three sessions.

All but one of the 10 TSX main groups were lower, led by a 1.9% slide in energy sector and a 2.3% drop in the materials index.

The health care sector was up 0.1%.

Telecommunications shares, down 1.5%, were led lower by BCE, which dropped $1.23, or 3%, to $39.49, after rival firm Telus said on Tuesday it was backing out of the bidding process to take over BCE.

Telus rose 19¢, or 0.3%, to $62.19.

Energy issues fell as U.S. crude oil slipped US$1.41, or 2%, to US$67.77 a barrel due to expectations of rising U.S. inventories.

EnCana dropped $1.96, or 2.9%, to $65.38, while Suncor Energy fell $2.17, or 2.3%, to $92.63.

Teck Cominco shed $1.33, or 2.9%, at $45.30.

Gold stocks closed 2.3% lower as the August bullion contract ended down $9.40 at US$645.30 an ounce on the Nymex, it’s lowest level since January.

Barrick Gold saw its shares fall 86¢, or 2.8%, at $30.08.

The financials index had the smallest decline of the major sectors, down 0.25%.

Manulife Financial struck a deal to acquire Berkshire-TWC’s mutual fund and securities dealerships. Financial terms were not disclosed. Manulife shares lost 21¢ to $39.24.

The junior S&P/TSX Venture composite index fell fell 70.34 points to 3,119.55.

The Canadian dollar gained 0.08 of a cent to US93.49¢.

In New York, U.S. stocks also closed lower for a third session on Tuesday.

Rising bond yields and fears the subprime mortgage meltdown could spread hurt some financial stocks.

The Dow Jones industrial average fell 14.39 points, or 0.11%, to end at 13,337.66. The S&P 500 was down 4.85 points, or 0.32%, to finish at 1,492.89. The Nasdaq composite index was down 2.92 points, or 0.11%, at 2,574.16.

The benchmark 10-year U.S. Treasury note was down 2/32, while the yield was up at 5.10%.

In economic news, U.S. government data showed new home sales fell more than expected last month, while consumer confidence slid in June to a 10-month low.

Sales of new homes fell 1.6% in May to a lower-than-expected level while prices climbed from April.

Consumer confidence fell more than expected in June, hitting a 10-month low as Americans grew anxious over jobs and the business climate.