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TSX ends up 1.58% at 22,225.61

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Posts its biggest gain since Feb. 15

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Energy gains 2.02%; oil settles up 1.3%

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Canadian Tire ( CDNTF ) jumps 7.74% on earnings beat

(Updates at market close)

By Fergal Smith

Aug 8 (Reuters) - Canada's main stock index climbed by

the most in six months on Thursday, as stocks that are sensitive

to the economic outlook led a broad-based rally after U.S.

jobless claims data eased fears of a slowdown in activity.

The Toronto Stock Exchange's S&P/TSX composite index

ended up 344.66 points, or 1.58%, at 22,225.61, its

biggest advance since Feb. 15.

It follows four straight days of declines, with the index

posting on Wednesday its lowest closing level in nearly six

weeks.

"Gains have been led by the cyclical sectors, like

financials and energy, because the U.S. numbers have eased

concerns about a slowdown in the U.S. economy," said Elvis

Picardo, a portfolio manager at Luft Financial, iA Private

Wealth.

U.S. stocks also jumped after the number of Americans filing

new applications for unemployment benefits fell more than

expected last week.

"The market is really being roiled by every incoming piece

of economic data and that's usually the case when you have

inflection points like the present," Picardo said.

"There is a big tug of war as far as investor sentiment is

concerned, and that's between lingering hopes of a soft landing

and fears that the U.S. is slowing faster than expected."

All 10 major sectors on the Toronto market gained ground,

including the economically sensitive and heavily weighted

financials group.

It ended 1.45% higher, with shares of Manulife Financial

Corp ( MFC ) rising 2.47% after the insurer reported

better-than-expected quarterly profit.

Energy rose 2.02% as the price of oil settled up 1.3%

at $76.19 a barrel. Gold and copper prices also

climbed, boosting metal mining shares.

The materials group, which includes metal miners and

fertilizer companies, added 1.74% and technology was up 3.04%.

Canadian Tire Corporation ( CDNTF ) was a standout. Its

shares jumped 7.74% after the company beat quarterly earnings

estimates.