(Updates at market close)

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TSX ends up 0.04% at 33,040.55

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For the week, the index adds 1.3%

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Energy adds 0.9% as oil settles higher

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MDA Space ( MDALF ) jumps 14.5% after rating upgrade

By Fergal Smith

Jan 16 (Reuters) - Canada's main stock index inched up

to another record high on Friday as energy ‌shares rose and after

a trade deal between Canada and China that could be supportive

of the economy.

The S&P/TSX ​Composite Index ended up 11.63 points,

or 0.04%, at 33,040.55, edging past Thursday's record ‍closing

high. For the week, the index was up 1.3%, ⁠lifting its gain

since ⁠the beginning of the year to 4.2%.

"Markets are rational. They're looking at what really

matters from fundamentals instead ‌of just chasing the headlines

on a daily ​basis," said Angelo Kourkafas, a senior global

investment strategist at Edward Jones.

"Looking at economic growth, profit growth or the outlook

for the Fed ⁠to lower rates gradually, helping global ‍liquidity -

all that ​remains supportive."

The swap market is largely pricing in two interest rate cuts

from the Federal Reserve this year.

Canada and China have struck an initial trade ‍deal that will

slash tariffs on electric vehicles and canola, Prime Minister

Mark Carney said, as both nations promised to tear down trade

barriers while forging new strategic ties.

"I think that is a positive for the economy as Canada of

course is looking for alternative sources for its products as

clearly the relationship with the ​U.S. is ‍not what it used to

be," Kourkafas said.

The energy sector rose 0.9%, helped by U.S. crude

futures which settled 0.4% higher at $59.44 a barrel ​on

lingering worries over supply risks.

Industrials also added 0.9%, with space-

technology firm MDA Space ( MDALF ) up 14.5% after Morgan Stanley

upgraded its stock to "overweight" from "equal-weight."

Six of the 10 major sectors ended lower, including

technology, which was down 1.2%.

The materials sector, which includes metal-mining

shares, fell 0.5% as the prices of gold and copper

pulled back from the record highs they made earlier in ​the week.

Capital Power Corp ( CPXWF ) shares were down 6.6%. Reuters

reported that governors from U.S. states will visit the White

House on Friday to sign an agreement with the Trump

administration intended to curb rising electricity ‍costs.