CORRECTED-CANADA STOCKS-TSX jumps as miners rise, index set for weekly gains (Feb 6)

By Utkarsh Hathi

Feb 6 (Reuters) - Canada's main stock index jumped on Friday in a broad-based rally led by mining shares as precious metals rebounded on safe-haven demand, setting up the index to finish a volatile week with healthy gains.

The S&P/TSX Composite Index .GSPTSE was up 1.36% at 32,429.90 points as of 10:32 a.m. ET, taking its weekly advance to 1.6% so far.

The gold sector .SPTTGD rose 5.1% — tracking gold XAU= prices — on track for weekly gains after the steepest drop since March 2020 last week.

Silver XAG= gained 7.7%, while copper prices eased after early losses. The broader materials index .GSPTTMT advanced 4.2%.

The TSX kicked off the week with a rebound in precious-metal miners' shares, before renewed weakness in metal markets pulled the sector lower again.

"Expect a lot of headwinds to continue with the macro news out there. Traders are going to focus on earnings like they always do, but they also have to consider potential risks in news coming out," said Michael Constantino, chief executive officer of Webull Canada.

"Markets cannot always go up continuously. There always is going to be some kind of pullback."

The TSX's tech index .SPTTTK rose 1.4%, though it looks set to log losses for a fourth straight week. Canadian tech stocks were caught up in a selloff in global software and data-services names earlier in the week on fears that artificial intelligence could disrupt traditional business models.

Meanwhile, trading in energy companies .SPTTEN remained choppy on Friday, last up 1.3%, with oil prices swinging between gains and losses throughout the day.

The consumer staples index .GSPTTCS was headed for its biggest weekly gain ever, up 8.4%.

On the macroeconomic front, Canada unexpectedly lost 24,800 jobs in January but the unemployment rate dipped to a 16-month low of 6.5% as fewer people looked for work, Statistics Canada said on Friday.