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TSX up 0.2%

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Air Canada ( ACDVF ) reports bigger-than-expected loss, shares drop

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Bausch Health ( BHC ) down after Q1 results

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Macklem says BoC closer to being able to cut rates

(Updated at 10:28 a.m. ET)

By Shubham Batra

May 2 (Reuters) - Canada's main stock index edged higher

on Thursday, boosted by gains in energy shares, while positive

comments on interest rates from Bank of Canada Governor Tiff

Macklem and U.S. Federal Reserve also lifted sentiment.

At 10:28 a.m. ET (1428 GMT), the Toronto Stock Exchange's

S&P/TSX composite index was up 48.74 points, or 0.22%,

at 21,777.29.

Macklem told the House of Commons finance committee on

Thursday that there is a limit to how far U.S. and Canadian

interest rates can diverge but "certainly we're not close to

that limit".

He had said on Wednesday BoC was getting closer to being

able to start cutting interest rates from its current 23-year

highs.

Separately on Wednesday, the U.S. Federal Reserve left

interest rates unchanged and allayed worries around potential

rate hikes.

"Markets are breathing a sigh of relief today as yesterday's

Fed meeting was less hawkish than feared," said Angelo

Kourkafas, investment strategist at Edward Jones Investments.

Back home, energy shares rose 1.0%, as oil

rebounded after three straight days of losses that took prices

to their lowest since mid-March.

Healthcare, however, kept the gains for the

benchmark index in check, as it fell 1.6%, dragged down by an

8.1% drop in Bausch Health ( BHC ) shares after the company's

quarterly results.

In corporate news, shares of Air Canada ( ACDVF ) dropped 8.2%

after Canada's largest carrier reported a bigger-than-expected

first-quarter loss on higher operating costs tied to labor and

aircraft maintenance.

Thomson Reuters ( TRI ) gained 4.2% as the information

provider beat first-quarter revenue forecast amid continued

investment in artificial intelligence.

Vermilion Energy ( VET ) jumped 6.0% and was the top gainer

on TSX after its first-quarter revenue fell less than expected.