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TSX ends up 0.3%, at 27,993.43

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Eclipses Tuesday's record closing high

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Gildan Activewear ( GIL ) jumps 11.8% after making acquisition

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Hudbay Minerals ( HBM ) adds 14.8% on sale of copper project stake

(Updates at market close)

By Nikhil Sharma and Fergal Smith

Aug 13 (Reuters) - Canada's main stock index scaled a

new all-time high on Wednesday, helped by gains for the

financial and consumer discretionary sectors, as investors

cheered recent U.S. inflation data that has left the door open

to Federal Reserve interest rate cuts.

The S&P/TSX composite index ended up 72.17 points,

or 0.3%, at 27,993.43, surpassing Tuesday's record closing high.

"We're seeing equity markets continue to do well," said

Colin Cieszynski, chief market strategist at SIA Wealth

Management. "People remain confident the economy has held up,

and inflation has not taken off as much as people thought."

Data on Tuesday showed that U.S. consumer prices increased

marginally in July, reinforcing expectations that the Fed would

ease rates in September.

Investors expect the Bank of Canada to remain on hold for a

fourth straight meeting next month but are leaning toward a rate

cut in October. Policymakers were divided on how much monetary

policy could aid growth under current economic conditions,

minutes of the BoC's meeting last month showed.

"Canadian central bankers were dissuaded from delivering a

25 basis point cut in July, but the door remains open to resume

easing later this year," Tiago Figueiredo, a macro strategist at

Desjardins, said in a note.

The consumer discretionary sector rose 2.4%, led

by Gildan Activewear ( GIL ). Its shares jumped 11.8% after the

apparel manufacturer agreed to buy U.S. undergarments maker

Hanesbrands ( HBI ) for $2.2 billion.

Hudbay Minerals Inc ( HBM ) was another standout, with its

shares climbing 14.8% after the company sold a 30% stake in a

copper project located in Arizona to Mitsubishi ( MSBHF ) for

$600 million.

Heavily weighted financials added 0.7%, while real

estate ended 1.3% higher as bond yields declined.

The Canadian 10-year yield was down 3.9 basis

points at 3.396%.

Technology was a drag, losing 1%.