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TSX ends down 0.2% at 26,375.80

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Canada vows to hit NATO defense spending target

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Bombardier gains 5.4%

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Tech sector falls 0.8%

(Updates at market close)

By Fergal Smith

June 9 (Reuters) - Canada's main stock index edged lower

on Monday as technology and financial shares lost ground, but

the move was restrained as investors weighed prospects of Canada

reaching a trade deal with the United States.

The S&P/TSX composite index ended down 53.33

points, or 0.2%, at 26,375.80, after posting on Friday a record

closing high.

U.S. President Donald Trump said that he was getting good

reports as U.S. officials hold trade talks with China in London.

"As much as Trump seems to be having positive talks with

China, there's some optimism that he's getting close to doing a

deal with Canada as well and I think that's been a lot of the

reason why the Canadian dollar is doing better and also why the

TSX is back to an all-time high," said Greg Taylor, chief

investment officer at PenderFund Capital Management.

The Canadian dollar edged higher against its U.S.

counterpart as Canadian Prime Minister Mark Carney said his

government would hit NATO's military spending target of 2% of

GDP this fiscal year, five years earlier than promised, a move

that some analysts say could ease the path to a trade deal with

the United States.

Canada has been under pressure from the United States and

other NATO allies for years to increase military funding.

Shares of jet maker Bombardier and aviation

simulation and training company CAE gained 5.4% and

2.3%, respectively. Still, the industrials sector ended 0.2%

lower, while financials lost 0.3% and technology was down 0.8%.

The materials sector added 0.6% as gold and copper

prices climbed.

Shares of uranium supplier Cameco jumped 10.7% after

a number of analysts raised their price target on the stock.