(Updates prices and details throughout)
* TSX up 0.6%
* BoC rate decision awaited
By Tharuniyaa Lakshmi
June 9 (Reuters) - Canada's main stock index rose on Tuesday
as easing Middle East tensions lifted global sentiment, ahead of
the Bank of Canada's rate decision this week.
At 10:09 a.m. ET, the Toronto Stock Exchange's S&P/TSX
composite index was up 0.6% at 34,717.89 points.
* Iran and Israel said on Monday that they had halted
attacks on each other after an appeal from U.S. President Donald
Trump, settling back into a tenuous ceasefire announced on April
8.
* "Geopolitical tensions have simmered down, and investors
are kind of looking through them and focusing more on the
economic backdrop, which is still pretty constructive for
equities," said Michael Dehal, a senior portfolio manager at
Dehal Investment Partners at Raymond James.
* "We have some economic data coming out this week,
including the Bank of Canada's rate decision, which we largely
expect to be unchanged," he added.
* Investors will closely watch the central bank's interest
rate decision due on Wednesday for cues on the policy outlook.
* The BoC is expected to hold rates steady this month, while
traders have priced in a little over one 25-basis-point hike by
year-end, according to LSEG data.
* U.S. consumer prices data for May, due on Wednesday, will
also be closely watched for fresh clues on how the rise in
energy prices due to the Iran war is impacting inflation.
* Nine of the 10 TSX sectors traded higher, with energy
stocks being the lone laggard, down 2%, as oil prices
fell amid easing Middle East tensions.
* Consumer discretionary stocks led gains, with
apparel maker Gildan Activewear ( GIL ) up 4%.
* The materials group, which includes metal
mining stocks, gained 1.1%, with Seabridge Gold ( SA ),
Capstone Copper ( CSCCF ) and Ivanhoe Mines among the top
gainers on the index, up 9.6% to 3.5%.