CANADA STOCKS-TSX rises as commodity-linked shares advance

By Nikhil Sharma

March 17 (Reuters) - Canada's main stock index rose on Monday, led by gains in energy and mining shares, coupled with a slightly upbeat sentiment on Wall Street after U.S. economic data.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 0.54% at 24,686.59 points, setting it up for a second straight day of gains.

Despite the recent rally, investors remain averse to taking risk. Concerns due to a global trade war had dragged Canada's benchmark index to a four-and-a-half-month low last week.

"There continues to remain a lot of uncertainty on a day-to-day basis and I don't think that's going to change anytime soon," said Josh Sheluk, portfolio manager at Verecan Capital Management.

The Organisation for Economic Cooperation and Development on Monday forecast that tariff hikes will drag down growth in Canada, Mexico and the United States while driving up inflation, forcing central banks to keep interest rates higher for longer.

On Monday, most sectors on the main index traded in the green. The heavyweight energy sector .SPTTEN led with a 1.5% rise, tracking higher crude prices.

Oil traded higher after the U.S. vowed to keep attacking Yemen's Houthis until the Iran-aligned group ends its assaults on shipping. Chinese economic data also fuelled hopes for higher demand. O/R

The materials sector .GSPTTMT rose 1.2%, primarily boosted by copper prices which rose due to the latest economic stimulus plan from top metals consumer China and a weaker U.S. dollar. MET/L

A major driver for overall gains was Wall Street, where the benchmark S&P 500 .SPX inched 0.3% higher as data showed retail sales rebounded in February.

Next on the radar is the U.S. Federal Reserve's two-day monetary policy meeting that ends on Wednesday.

While the central bank is expected to keep interest rates steady, focus will be on its policy outlook amid prospects of economic slowdown and higher inflation.