* TSX ends up 0.8% at 34,937.85

* Materials group rises 3.1% as copper prices climb

* Financials add 0.9%

* Energy loses 0.5% as oil settles 3.2% lower

(Updates at market close)

By Tharuniyaa Lakshmi and Fergal Smith

TORONTO, June 12 (Reuters) - Canada's main stock index moved

closer to a record high on Friday, led by gains for metal mining

shares, as hopes for an imminent peace deal in the Middle East

boosted investor sentiment globally.

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

ended up 266.39 points, or 0.8%, at 34,937.85 points,

marking the highest closing level since the index posted a

record high on June 4. For the week, the index was up 1.5%.

* The U.S. benchmark S&P 500 also rose as the United States

and Iran signaled that an agreement to end their war was close

and as SpaceX shares surged in their debut.

* "I'd say right now there is optimism this will be a

lasting peace," said Shiraz Ahmed, founder at Sartorial Wealth.

* The materials group, which includes metal

mining shares, was up 3.1%.

* A peace deal could help ease concerns over rising

inflation and slower economic growth, boosting copper prices

by 2.7%.

* On Wednesday, the Bank of Canada said it will not let

higher energy prices become persistent inflation as it left its

benchmark interest rate on hold at 2.25%.

* Heavily weighted financials added 0.9% and

consumer discretionary ended 0.7% higher.

* Shares of Apotex Health were up 5.4%, adding to

gains since the generic drugmaker made its market debut on

Wednesday in the TSX's largest IPO in five years.

* Four of the 10 major sectors ended lower, including

technology, which lost 1% and energy

* Energy was down 0.5% as the price of oil settled

3.2% lower at $84.88 a barrel.