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TSX up 0.2%

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Consumer staples, financial stocks lead gains

(Updated at 10:04 a.m. ET/ 1404 GMT)

By Purvi Agarwal

April 15 (Reuters) - Canada's main stock index edged

higher on Monday, boosted by gains in consumer staples and

financials stocks, as the market recovered from the previous

week's broad sell-off triggered by hotter-than-expected U.S.

inflation data.

At 10:04 a.m. ET (14:04 GMT), the Toronto Stock Exchange's

S&P/TSX composite index was up 40.09 points, or 0.18%,

at 21,940.08.

Heavy-weight financials stocks gained 0.6%, while

consumer staples rose 1.0%.

Communication services shares rose 0.4%. The

sector was pulled up by Cogeco Communications ( CGEAF ), that

rose 0.6% after brokerage RBC raised its price target on the

company following its first-quarter results.

Only three sectors out of eleven were recording losses.

Energy stocks declined by 0.8%, tracking a drop in oil

prices.

"We are seeing a bit of a rebound, based on strong economic

data (retail sales in the US) and hopes for a de-escalation of

Middle East tensions," said Angelo Kourkafas, senior investment

strategist at Edward Jones Investments.

In the U.S., retail sales increased more than expected in

March, providing further evidence that the economy ended the

first quarter on solid ground.

"The ongoing economic strength suggests that the Fed is not

in a rush to cut rates, but on the flip side, corporate profits

will continue to be supported that can extend the expansion of

the bull market", he added.

Investor focus will shift to the March reading of the

crucial consumer prices index (CPI) in Canada, due on Tuesday,

to gauge inflation in the economy and adjust expectations of an

interest rate cut by the Bank of Canada.

The dataset is in the limelight after BoC Governor Tiff

Macklem hinted at the central bank's last decision that it could

be open to a June cut if the recent cooling trend in inflation

was sustained.