CANADA STOCKS-TSX stocks rise on energy gains, rate cut hopes

By Sanchayaita Roy

Sept 9 (Reuters) - Canada’s commodity-heavy main stock index edged higher on Tuesday, led by energy and materials shares, as markets stayed optimistic about a potential Bank of Canada interest rate cut this month.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 0.11% at 29,060.74 points. The benchmark index snapped an eight-session winning streak on Monday, closing with marginal losses.

Energy stocks .SPTTEN rose 1.4% as oil extended gains on Tuesday after Israeli military attacked Hamas leaders in Qatari capital Doha.

An index tracking mining shares .GSPTTMT rose 0.9% after gold hit another record high driven by growing bets on a U.S. rate cut.

Expectations that the BoC and the Federal Reserve will resume their easing cycles have supported market sentiment since last Friday, following disappointing jobs data from both the U.S. and Canada.

Investors see nearly a 90% chance the BoC will lower its benchmark rate from its current setting of 2.75% on September 17. 0#CADIRPR

"The TSX is at near year highs, up over 17% year-to-date. That proves that investors are confident now and looking ahead three months down the line," said Michael Constantino, CEO of online investment platform Webull Canada.

Markets were also assessing multiple deals on the mergers and acquisitions front.

London-listed miner Anglo American and Canada's Teck Resources announced their merger earlier on Tuesday, in what would be the biggest mining sector M&A deal in over a decade. Shares of the Canadian firm rose 14.2%.

Separately, U.S. refiner Phillips 66 PSX.N said it will acquire the remaining 50% stake in WRB Refining from Cenovus Energy CVE.TO for $1.4 billion, giving it full ownership of two major U.S. refineries. Shares of Cenovus rose 3.1%.

"This recent M&A in the energy market is good overall for for the Canadian economy," Constantino added.

Meanwhile, data showed the U.S. economy likely created 911,000 fewer jobs in the 12 months through March than previously estimated, suggesting that job growth was already stalling before President Donald Trump's aggressive tariffs on imports.