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TSX ends up 1.2% at 22,223.67

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Posts its highest closing level since June 6

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Materials group rallies 3.4%

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Open Text ( OTEX ) up after announcing job cuts

(Updates at market close)

By Nikhil Sharma and Fergal Smith

July 3 (Reuters) - Canada's main stock index rose to a

near four-week high on Wednesday, with metal mining stocks

leading a broad-based rally as the U.S. dollar fell ahead of

employment data that could support prospects of Federal Reserve

interest rate cuts.

The S&P/TSX composite index ended up 269.87

points, or 1.2%, at 22,223.67, its highest closing level since

June 6 as U.S. economic data pointed to easing labor market

conditions.

"It'll also be interesting to see what happens with non-farm

payrolls on Friday, but today you're kind of getting a mixed bag

of economic numbers," said Colin Cieszynski, chief market

strategist at SIA Wealth Management.

Economists expect the U.S. non-farm payrolls report on

Friday to show a slower pace of job growth. Markets hope that

signs of weakness in the labor market will encourage the Fed to

cut interest rates.

The U.S. 10-year Treasury yield, a benchmark for

borrowing costs globally, eased about 8 basis points to 4.35%

and the U.S. dollar touched a near three-week low against

a basket of major currencies.

The materials group, which includes metal miners and

fertilizer companies, rose 3.4%, as a weaker U.S. dollar boosted

gold and copper prices.

The price of oil also rose, settling 1.3% higher at

$83.88 a barrel. That helped the energy group, which was up

0.6%.

All ten major sectors on the Toronto market ended higher,

with heavily weighted financials up 1% and industrials adding

1.4%.

The utilities group, which is dominated by high

dividend-paying stocks that could particularly benefit from

lower interest rates, climbed 1.5%.

Shares of Open Text Corp ( OTEX ) ended 1.5% higher after

the company announced a business optimization plan expected to

result in the reduction of nearly 1,200 positions.