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TSX up 0.5%

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Stelco ( STZHF ) jumps 72% after agreeing to be bought by

Cleveland-Cliff

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Industrials lead sectoral gains

(Updated at 10:50 a.m. ET/1450 GMT)

By Nikhil Sharma

July 15 (Reuters) - Canada's main stock index notched a

record high on Monday as industrial and energy shares rose,

while markets saw higher odds of U.S. presidential candidate

Donald Trump winning the November polls after surviving an

assassination attempt.

At 10:50 a.m. ET (1450 GMT), the S&P/TSX composite index

was up 101.74 points, or 0.45%, at 22,775.26.

Industrial shares led the sectoral gains with a

0.7% rise. The heavyweight energy sector climbed 1% as

oil prices held ground.

Wall Street's main indexes were also up following the

assassination attempt on Saturday, while Trump-linked stocks

advanced.

"If you get a 3-way win by the Republicans, I could see them

being more aggressive on deregulation with energy," said Nicolas

Katsiyianis, head of research at Eight Capital.

"That would also mean, the possibility of lower taxes, more

defense spending, maybe a little bit more."

Back home, Canada's manufacturing sales grew 0.4% in May

from April on higher sales of aerospace products and parts

industry, as well as primary food.

The market's focus now shifts to Tuesday's inflation

data, which can help investors recalibrate their bets on rate

cut by the Bank of Canada in its next policy meeting on July 24.

"If Canada's inflation rate falls too low compared to the

U.S., then Canada could drop rates faster than the U.S.. And if

that happens, then there's more risk on the Canadian dollar

falling further," Katsiyianis said.

Among individual stocks, Stelco Holdings' ( STZHF )

shares soared to the top of the Toronto Stock Exchange with a

72.9% jump after U.S. steelmaker Cleveland-Cliffs ( CLF ) said

it will buy the Canadian peer for C$3.85 billion ($2.8 billion).