CANADA STOCKS-TSX posts second straight weekly decline as investor caution grows

By Pranav Kashyap and Fergal Smith

TORONTO, Nov 7 (Reuters) - Canada's main stock index ended higher on Friday as investors weighed prospects of an end to the U.S. government shutdown and stronger-than-expected domestic jobs data.

The S&P/TSX Composite Index .GSPTSE ended up 43.60 points, or 0.2%, at 29,912.19, after clawing back its earlier losses. For the week, the index was down 1.15%, its second straight weekly decline.

The U.S. benchmark S&P 500 also ended higher following reports of progress on the congressional impasse that has resulted in the longest federal government shutdown in U.S. history. Still, worries about sky-high tech stock valuations have dampened risk appetite.

"The volatility is back ... we're still seeing clients put their money to work, but they're more conservative," said Michael Constantino, CEO of Webull Canada.

CANADA ADDS JOBS IN OCTOBER

Canada's economy added 66,600 jobs in October, compared to expectations for a decline of 2,500, and the unemployment rate fell to 6.9% from 7.1%.

The data vindicates for now "the BoC’s clear hold signal and the Carney administration’s resistance against heaping on cyclical stimulus," Derek Holt, head of capital markets economics at Scotiabank, said in a note.

Canada's budget on Tuesday forecast that the fiscal deficit will more than double this year, but much of the additional spending was focused on measures to raise economic productivity rather than boosting demand. Last week, the Bank of Canada signaled a possible end to its easing campaign.

The materials group .GSPTTMT, which includes metal mining shares, rose 1.4% as the price of gold XAU= increased.

Utilities .GSPTTUT rose 0.9%, led by a gain of 7.8% for the shares of Algonquin Power & Utilities Corp AQN.TO after the company reported quarterly earnings.

Technology .SPTTTK was a drag, losing 2.6%, with shares of electronics equipment firm Celestica CLS.TO down 6.2%.

Real estate fell 0.7%. Shares of Altus Group AIF.TO dropped 12% after the real estate services company's quarterly results missed estimates.