(Updates)

By Utkarsh Hathi

Jan 8 (Reuters) - Canada's main stock index rose on

Thursday, recouping some of the previous session's losses, as

investors awaited key U.S. and domestic labor market data for

cues on future monetary policy.

The S&P/TSX Composite index was ‌up 0.3% at

32,234.44 points as of 11:01 a.m. ET.

Market sentiment this week has been ​largely shaped by

developments in Venezuela, home to the world's largest ‍oil

reserves, where a potential increase in production ⁠could

increase competition for ⁠Canadian oil companies.

Oil prices rose on Thursday, reversing direction after two

sessions of losses ‌driven by concerns that the United ​States'

attempt to control Venezuelan reserves would lead to higher oil

supply.

TSX's energy sub-index gained 0.3%, but was still

on ⁠track for a steep weekly ‍decline.

"We'll ​hear in the coming days that China may use oil in

Canada. If that's the case, then oil companies will ‍probably go

higher. I don't think there's been a destabilization of oil

stocks, the volatility was very short-lived," said Allan Small,

senior investment advisor at Allan Small Financial Group with iA

Private Wealth.

Prime Minister Mark Carney is expected to visit China next week

as Canada ​seeks ‍to diversify trade relationships in the face of

steep U.S. tariffs.

Meanwhile, gold miners fell 0.5% and the broader

materials sector ​slid 0.4% as gold and silver

prices declined.

Investors also await the release of December employment data

for the U.S. and Canada on Friday, which could help them gauge

the next monetary policy moves from the U.S. Federal Reserve and

the Bank of Canada.

In notable stock moves, shares of MDA Space ( MDALF ) ​jumped

6% after the space and defense technology company said it has

been selected by the U.S. Missile Defense Agency for SHIELD, a

program to expand the country's ‍homeland missile defense.