(Updates at market close)

*

TSX ends up 0.2% at 29,912.19

*

For the week, the index loses 1.15%

*

Materials group adds 1.4% as gold rises

*

Tech sector falls 2.6%

By Pranav Kashyap and Fergal Smith

TORONTO, Nov 7 (Reuters) - Canada's main stock index

ended higher on Friday as investors weighed prospects of an end

to the U.S. government shutdown and stronger-than-expected

domestic jobs data.

The S&P/TSX Composite Index ended up 43.60 points,

or 0.2%, at 29,912.19, after clawing back its earlier losses.

For the week, the index was down 1.15%, its second straight

weekly decline.

The U.S. benchmark S&P 500 also ended higher following reports

of progress on the congressional impasse that has resulted in

the longest federal government shutdown in U.S. history. Still,

worries about sky-high tech stock valuations have dampened risk

appetite.

"The volatility is back ... we're still seeing clients put

their money to work, but they're more conservative," said

Michael Constantino, CEO of Webull Canada.

CANADA ADDS JOBS IN OCTOBER

Canada's economy added 66,600 jobs in October, compared to

expectations for a decline of 2,500, and the unemployment rate

fell to 6.9% from 7.1%.

The data vindicates for now "the BoC's clear hold signal and

the Carney administration's resistance against heaping on

cyclical stimulus," Derek Holt, head of capital markets

economics at Scotiabank, said in a note.

Canada's budget on Tuesday forecast that the fiscal deficit

will more than double this year, but much of the additional

spending was focused on measures to raise economic productivity

rather than boosting demand. Last week, the Bank of Canada

signaled a possible end to its easing campaign.

The materials group, which includes metal mining

shares, rose 1.4% as the price of gold increased.

Utilities rose 0.9%, led by a gain of 7.8% for

the shares of Algonquin Power & Utilities Corp ( AQNB ) after

the company reported quarterly earnings.

Technology was a drag, losing 2.6%, with shares of

electronics equipment firm Celestica ( CLS ) down 6.2%.

Real estate fell 0.7%. Shares of Altus Group ( ASGTF )

dropped 12% after the real estate services company's quarterly

results missed estimates.