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TSX ends up 0.5% at 27,539.88

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Eclipses Friday's record closing high

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Celestica ( CLS ) climbs 16.9% on Q2 results

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Metal mining and energy shares climb

(Updates at market close)

By Fergal Smith

July 29 (Reuters) - Canada's main stock index rose to a

new record high on Tuesday, led by gains for resource and

technology shares as investor exuberance continued to underpin

the market ahead of a Bank of Canada policy decision and other

key events this week.

The S&P/TSX composite index ended up 134.46

points, or 0.5%, at 27,539.88, eclipsing Friday's record closing

high.

"Optimism still seems to be pervading the market but we're

entering the most interesting part of the week," said Michael

Sprung, president at Sprung Investment Management.

The Federal Reserve and the Bank of Canada are due to make

policy decisions on Wednesday, while a deadline for Canada to

reach a trade deal with the U.S., or face a 35% tariff on its

goods, is set for Friday.

The BoC is likely to keep its benchmark rate unchanged at 2.75%

for the third straight meeting, economists and market analysts

predict, as firm core inflation and robust job growth offset

trade uncertainty.

U.S. ambassador to Canada Pete Hoekstra said he hoped a trade

deal between Canada and the U.S. would be reached "very soon."

"I think the market has risen on euphoria and I don't know

what it will take to break that euphoria, but I think at some

point people are going to have to look hard at valuations and

decide what intrinsic value really is and that could cause some

setback going forward," Sprung said.

Technology rose 2.2%, with shares of Celestica ( CLS )

climbing 16.9% after the electronics firm reported

stronger-than-expected second-quarter results.

Real estate was up 1.7% as bond yields fell. The

Canadian 10-year yield eased 4.5 basis points to 3.484%.

The materials group, which includes metal mining

shares, added 1.2% as the price of gold rose.

Energy also ended higher, rising 1%, as the price

of oil settled up 3.8% at $69.21 a barrel.

Air Canada ( ACDVF ) was a drag, with its shares tumbling

12.3% after the company reported lower second-quarter profit.