(Updates with morning prices)

By Nikhil Sharma

March 17 (Reuters) - Canada's main stock index rose on

Monday, led by gains in energy and mining shares, coupled with a

slightly upbeat sentiment on Wall Street after U.S. economic

data.

The Toronto Stock Exchange's S&P/TSX composite index

was up 0.54% at 24,686.59 points, setting it up for a

second straight day of gains.

Despite the recent rally, investors remain averse to taking

risk. Concerns due to a global trade war had dragged Canada's

benchmark index to a four-and-a-half-month low last week.

"There continues to remain a lot of uncertainty on a

day-to-day basis and I don't think that's going to change

anytime soon," said Josh Sheluk, portfolio manager at Verecan

Capital Management.

The Organisation for Economic Cooperation and Development on

Monday forecast that tariff hikes will drag down growth in

Canada, Mexico and the United States while driving up inflation,

forcing central banks to keep interest rates higher for longer.

On Monday, most sectors on the main index traded in the

green. The heavyweight energy sector led with a 1.5%

rise, tracking higher crude prices.

Oil traded higher after the U.S. vowed to keep attacking

Yemen's Houthis until the Iran-aligned group ends its assaults

on shipping. Chinese economic data also fuelled hopes for higher

demand.

The materials sector rose 1.2%, primarily boosted

by copper prices which rose due to the latest economic stimulus

plan from top metals consumer China and a weaker U.S. dollar.

A major driver for overall gains was Wall Street, where the

benchmark S&P 500 inched 0.3% higher as data showed

retail sales rebounded in February.

Next on the radar is the U.S. Federal Reserve's two-day

monetary policy meeting that ends on Wednesday.

While the central bank is expected to keep interest rates

steady, focus will be on its policy outlook amid prospects of

economic slowdown and higher inflation.