CANADA STOCKS-TSX set for eighth straight week of gains as economic data adds to optimism

By Twesha Dikshit

Sept 26 (Reuters) - Canada's main stock index advanced with broad-based gains after key domestic GDP and in-line U.S. inflation data added to investor optimism.

Toronto's S&P/TSX composite index .GSPTSE rose 0.3% to 29,817.85 points by 09:55 a.m. ET (1355 GMT), and was on track for eight consecutive weeks of gains.

Canada's monthly GDP rebounded from three months of contraction to grow by 0.2% in July, with mining, manufacturing and wholesale trade boosting growth.

"With a 0.2% print, we're in a very slow growth economy ... so I would agree that there would be implications on interest rates here," said Robert Gill, portfolio manager at Fairbank Investment Management.

"TSX has been quite strong recently, although just in the last week it's been pulling back a bit. Some of the market participants are simply just locking in some gains here. It's been a very heated market and they're rotating out of some overextended sectors, in particular technology."

The technology index .SPTTTK led the declines, with heavyweight e-commerce firm Shopify SHOP.TO falling 1%.

Consumer non-cyclicals .SPCDNX and gold miners .SPTTGD were among the top gainers on the day.

Among individual stocks, Perpetua Resources PPTA.TO jumped 17.3% after saying it was in talks with Glencore GLEN.L, Trafigura [RIC:RIC:TRAFG.UL], Clarios and Sunshine Silver about partnerships to refine antimony in the U.S.

Bus and coach maker NFI Group NFI.TO dropped 12% after providing updates for the third quarter of the year and saying it was actively responding to numerous bids.

U.S. Personal Consumption Expenditures index was in-line with expectations, increasing bets that the Federal Reserve might further lower rates this year.

U.S. President Donald Trump announced a fresh set of tariffs on branded drugs, heavy-duty trucks and furniture that will come into effect next week.

Meanwhile, Canadian Prime Minister Mark Carney met his British counterpart Keir Starmer to discuss deepening trade ties.