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TSX ends 0.2% lower at 24,795.55

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Materials sector loses 2.4% as gold falls

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Bombardier declines 9.4% after revenue miss

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Energy adds 0.9% as oil rallies

(Updates at market close)

By Fergal Smith

May 1 (Reuters) - Canada's main stock index ended lower

on Thursday as gold mining shares fell, but the index stayed in

reach of a recent four-week high as investors weighed prospects

of fiscal spending and welcomed recent calming of global trade

tensions.

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

ended down 46.13 points, or 0.2%, at 24,795.55. On

Tuesday, it posted its highest closing level in four weeks at

24,874.48.

U.S. stocks rose after strong results from megacaps

Microsoft ( MSFT ) and Meta eased concerns about

artificial intelligence spending. Investor sentiment has

improved in recent weeks after U.S. President Donald Trump put

on pause sweeping global tariffs.

"There's a bit of optimism in the air, particularly coming

from the macro side, just with the election, (and) the tone

seems to have changed significantly from President Trump," said

Ben Jang, a portfolio manager at Nicola Wealth.

"Likely we're going to see legislation passed fairly

quickly, almost preemptively, to help support the Canadian

economy."

Canadian manufacturing activity contracted in April at the

steepest rate since shortly after the start of the COVID-19

pandemic as the uncertain nature of U.S. trade policy weighed on

production and new orders.

Prime Minister Mark Carney's Liberal Party, which retained

power in the Canadian general election on Monday, has promised

to cut taxes and increase spending on housing and

infrastructure.

The materials group, which includes metal mining shares,

fell 2.4% as unwinding of safe-haven bets led to gold

dropping to a two-week low.

Shares of Bombardier Inc ( BDRPF ) lost 9.4% after the

business jet manufacturer reported first-quarter revenue that

fell slightly short of investor expectations.

The technology sector rose 0.7%, helped by a gain of nearly

5% for the shares of electronics firm Celestica ( CLS ).

Energy was up 0.9% as the price of oil settled 1.8%

higher at $59.24 a barrel.