(Updates with morning prices)

By Sanchayaita Roy

June 2 (Reuters) - Canada's commodity-heavy main stock

index rose on Monday, helped by gains in energy and metal

miners' shares.

The S&P/TSX composite index was up 0.42% at

26,281.03 points.

The materials group gained 4.2%, tracking higher

gold prices. The energy subindex rose 1.9% as oil

prices jumped about 4% after producer group OPEC+ kept output

increases in July at the same level as the previous two months.

Conversely, the healthcare sector fell 2.3%, with

cannabis firm Tilray Brands leading the losses, down

5.1%.

Global equities edged lower after U.S. President Donald

Trump said on Friday he planned to increase tariffs on imported

steel and aluminum to 50% from 25% starting Wednesday.

The European Union said it was prepared to retaliate,

setting the stage for an intensified trade war.

"Canada has benefited from a softening of the harsh tariff

talk... the problem is, we haven't had any trade deals yet and

if we don't get any as we get closer to the beginning of July,

which is when the 90-day pause is set to expire, that could make

for some volatility towards the end of June", said Allan Small,

senior investment advisor at Allan Small Financial Group with iA

Private Wealth.

The Toronto Stock Exchange on Friday posted its biggest

monthly rise of 5.4% since November, helped by easing global

trade tensions.

Investor focus this week will be on the Bank of Canada's

interest rate decision due on Wednesday and the Canadian

employment report, expected Friday.

The central bank is likely to hold the rate at 2.75%,

according to the majority of economists polled by Reuters.

On the data front, Canadian manufacturing activity

contracted for a fourth straight month in May as trade

uncertainty led firms to shed workers at the fastest rate since

early in the pandemic.