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TSX up 0.5%

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BoC cuts rates for first time in four years

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GFL hits record high on buyout offer report

(Updated at 10:11 a.m. ET)

By Shubham Batra

June 5 (Reuters) - Toronto stocks climbed on Wednesday

after the Bank of Canada (BoC) trimmed its key policy rate by 25

basis points and said more easing was likely if inflation

continued to ease, while most commodities recovered after the

U.S. jobs report raised rate cuts bets.

At 10:11 a.m. ET (14:11 GMT), the Toronto Stock Exchange's

S&P/TSX composite index was up 104.24 points, or

0.47%, at 22,082.42.

After almost a year of keeping interest rates at a more than

two-decade high, the BoC trimmed its key policy rate by 25 basis

points to 4.75%, its first cut in four years.

"The Canadian economy is slowing. There's definitely some

stress in the system and we've really had the inflation return

towards their (BoC) target level," said Greg Taylor, chief

investment officer at Purpose Investments.

"It's good news as it's the right direction for the economy

and the markets."

Canadian dollar weakened 0.2% to 1.3711 per U.S.

dollar after the rate cut, while Canada's 2-year yield

fell 8.3 basis points to 3.973%.

The swap market data showed a 60% chance of the Canadian

central bank cutting rates further in July.

Among sectors, rate-sensitive utilities, which

includes high-dividend paying stocks that could particularly

benefit from rate cuts, advanced 0.8%.

Materials stocks also climbed 0.4% after gold

prices ticked higher as investors positioned for a flurry of

U.S. economic data to gauge the U.S. central bank's rate path.

Industrials advanced 0.6% with a big boost from

GFL Environmental ( GFL ) that rose 4.3% to hit a record high

after reports that the waste management company hired advisers

to evaluate two buyout offers.

In the U.S., Wall Street rose as investors ramped up bets

for an early start to interest rate cuts by the Federal Reserve

as the latest economic reports signalled a weakening labor

market.