* TSX ends up 0.2% at 34,478.74

* Energy adds 1.6% as oil settles 0.8% higher

* TD Cowen raises price target on defense companies

* BoC interest rate decision due on Wednesday

(Updates at market close)

By Tharuniyaa Lakshmi and Fergal Smith

June 8 (Reuters) - Canada's main stock index clawed back

some of the previous session's sharp decline on Monday, with

energy and technology shares leading gains as investors weighed

signs of cooling tensions in the Middle East.

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

ended up 65.29 points, or 0.2%, at 34,478.74, after

posting on Friday its biggest decline in nearly four months.

* U.S. stocks also rebounded after a sharp selloff on

Friday, led by gains in the Nasdaq and chipmakers.

* Iran and Israel said they had halted attacks on each

other after an appeal from U.S. President Donald Trump that they

immediately "stop 'shooting'", though Tehran said it would

resume strikes if Israel continued to hit Hezbollah in Lebanon.

* "For the markets, they're taking it more in stride now,"

said Allan Small, senior investment advisor at Allan Small

Financial Group with iA Private Wealth. "It's like anything that

goes on for a long period of time... the bar is very high to

have an effect."

* The energy sector rose 1.6% as the price of oil

settled 0.8% higher at $91.30 a barrel.

* Technology was up 0.9%, with shares of

electronic equipment company Celestica Inc ( CLS ) adding 3.8%.

* TD Cowen raised its price target on a number of Canadian

defense companies, including Bombardier Inc BBDb.TO and Magellan

Aerospace MAL.TO.

* Shares of Magellan ended 6.4% higher, while heavily

weighted financials added 0.4%.

* The Canadian government is launching a new loan program to

help domestic airlines deal with high fuel prices and maintain

operations and jobs, the finance ministry said.

* Shares of Air Canada ( ACDVF ) were down 0.7%.

* Investors awaited a Bank of Canada interest rate decision

on Wednesday. The central bank was expected to leave its

benchmark interest rate on hold at 2.25% for a fifth straight

meeting, according to a majority of economists polled by

Reuters.