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TSX ends up 0.4% at 23,568.65

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For the week, the index gains 3.5%

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Materials group rises to highest since April 2022

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2-year yield falls to 2-year low

(Updates at market close)

By Fergal Smith

Sept 13 (Reuters) - Canada's main stock index rose to an

all-time high on Friday in a broad-based rally, led by mining

stocks, as expectations rose the U.S. Federal Reserve would opt

for an oversized interest rate cut at a policy decision next

week.

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

ended up 93.51 points, or 0.4%, at 23,568.65, moving

past the record closing high it set on Thursday. For the week,

the index was up 3.5%, its biggest weekly gain since October.

"This is the everything rally going on. We've got equities

up, we've got bonds working, commodities going," said Greg

Taylor, a portfolio manager at Purpose Investments.

"We're getting a lot of expectations that the Fed next week

is going to do a 50 basis-point cut. Markets seem to be cheering

that on."

Wall Street's main indexes also rose as investors priced in

a near 50% chance of a half-percentage-point reduction in

interest rates by the Fed at a policy decision due on Wednesday.

The Toronto market's materials group, which includes

fertilizer companies and metal mining shares, rose 1.5% as gold

and copper prices climbed, notching its highest closing level

since April 2022.

Technology added 0.7% and real estate, which could

particularly benefit from lower borrowing costs, ended 2.1%

higher.

Canada's 2-year yield fell nearly 6 basis points

to 2.945%, its lowest level in more than two years.

The Canadian government will not intervene to end a dispute

between Air Canada ( ACDVF ) and its pilots and intends instead to

pressure both sides to avert a strike, Prime Minister Justin

Trudeau said. Air Canada's ( ACDVF ) shares ended nearly 1% higher.