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TSX up 0.7%

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Resources shares lead gains

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Crypto miners gain on rising Bitcoin

(Updated at 9:51 a.m. ET/ 1351 GMT)

By Purvi Agarwal

May 6 (Reuters) - Canada's main stock index climbed to

its highest in three weeks on Monday amid a broader rally led by

resources stocks, as investors factored in a higher chance of

Fed rate cuts after soft payrolls data last week.

At 9:51 a.m. ET (13:51 GMT), the Toronto Stock Exchange's

S&P/TSX composite index was up 144.62 points, or

0.66%, at 22,092.03.

The materials sector jumped 1.8%, with miners like Fortuna

Silver Mines ( FSM ) and New Gold ( NGD ) gaining 4.3% and

4.2%, respectively, tracking higher prices of precious metals.

Energy shares followed with 1.6%, rise as oil

prices climbed after Saudi Arabia hiked June crude prices and as

slimming prospects of a Gaza ceasefire deal renewed fears of a

widening conflict in the Middle East.

Resources shares led gains among the broader rally except

for healthcare shares that fell 0.2%.

"It's the spillover from last week. A lot of it has to do

with the Federal Reserve mentioning that it still sees the next

rate movement as being a cut versus a raise," said Allan Small,

senior investment advisor of the Allan Small Financial Group

with iA Private Wealth.

Data showing that U.S. job growth slowed more than expected

in April and annual wage gains cooled had added to bets of a

September rate cut by the Federal Reserve, pushing Wall Street

indexes to close over 1% higher on Friday.

Investors will watch out for speeches by Richmond Fed

President Thomas Barkin and his New York counterpart John

Williams later in the day.

"If any of the Federal Reserve officials were to talk about

an interest rate hike, it will move markets," Small added.

In corporate news, crypto miners Bitfarms ( BITF ) and Hit

8 rose 5.2% and 6.0%, respectively, tracking a 1.6%

rise in Bitcoin.