CANADA STOCKS-TSX edges higher as traders await labor market data

By Utkarsh Hathi

Jan 8 (Reuters) - Canada's main stock index rose on Thursday, recouping some of the previous session's losses, as investors awaited key U.S. and domestic labor market data for cues on future monetary policy.

The S&P/TSX Composite index .GSPTSE was up 0.3% at 32,234.44 points as of 11:01 a.m. ET.

Market sentiment this week has been largely shaped by developments in Venezuela, home to the world's largest oil reserves, where a potential increase in production could increase competition for Canadian oil companies.

Oil prices rose on Thursday, reversing direction after two sessions of losses driven by concerns that the United States' attempt to control Venezuelan reserves would lead to higher oil supply. O/R

TSX's energy sub-index .SPTTEN gained 0.3%, but was still on track for a steep weekly decline.

"We'll hear in the coming days that China may use oil in Canada. If that's the case, then oil companies will probably go higher. I don't think there's been a destabilization of oil stocks, the volatility was very short-lived," said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.

Prime Minister Mark Carney is expected to visit China next week as Canada seeks to diversify trade relationships in the face of steep U.S. tariffs.

Meanwhile, gold miners .SPTTGD fell 0.5% and the broader materials sector .GSPTTMT slid 0.4% as gold XAU= and silver XAG= prices declined. GOL/

Investors also await the release of December employment data for the U.S. and Canada on Friday, which could help them gauge the next monetary policy moves from the U.S. Federal Reserve and the Bank of Canada.

In notable stock moves, shares of MDA Space MDA.TO jumped 6% after the space and defense technology company said it has been selected by the U.S. Missile Defense Agency for SHIELD, a program to expand the country's homeland missile defense.