CANADA STOCKS-TSX rises ahead of Fed rate decision

By Nikhil Sharma

March 19 (Reuters) - Canada's main stock index rose more than 1% on Wednesday, mirroring the positive sentiment on Wall Street as investors awaited the U.S. Federal Reserve's interest rate verdict due later in the day.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 1.2% at 24,999.08 points, its highest level in over two weeks. Wall Street's tech-heavy Nasdaq index .IXIC gained 1.1%.

Canada's information technology sector .SPTTTK was the biggest gainer among sectors on Wednesday, adding 2.4%, boosted by a 7.2% jump in index heavyweight Shopify SHOP.TO.

The energy index .SPTTEN rose 1.8%, extending its gains to a fourth straight session even as oil prices were flat. O/R

"The fact that we are seeing absence of new trade (tariff) headlines... is helping sentiment recover a bit," said Angelo Kourkafas, investment strategist at Edward Jones Investments.

The Fed is widely expected to keep rates steady at 4.25%-4.50% range. Traders see only two further cuts by the central bank later in the year. 0#FEDWATCH

Besides the rate verdict, the spotlight will be on commentary in Fed Chairman Jerome Powell's press conference, and policymakers' economic growth projections amid the US' trade war with key partners such as Canada, China and Europe, said Kourkafas.

The TSX is largely flat for the year, erasing initial gains in the run-up to Trump's inauguration in January.

The pressure on Canadian equities reflects markets globally as investors try to price in risks of recession due to U.S. President Donald Trump's tariffs and the resulting trade war.

The Bank of Canada, at its policy meeting last week, had warned that the domestic economy could be hit by trade uncertainties.

Canadian retailer Alimentation Couche-Tard ATD.TO rose 3.5% after reporting third-quarter results, lifting the consumer staples index .GSPTTCS by 1.9%.