*

TSX ends up 0.6% at 23,702.07

*

Posts record closing high

*

Energy adds 1%; oil settles 2.1% higher

*

Bausch Health Companies ( BHC ) jumps 10.6%

(Updates at market close)

By Nikhil Sharma and Fergal Smith

Sept 16 (Reuters) - Canada's commodity-linked main stock

index rose to an all-time high on Monday, led by gains for

energy and technology shares, as expectations rose the Federal

Reserve would cut U.S. interest rates by half a percentage point

at a policy decision this week.

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

ended up 133.42 points, or 0.6%, at 23,702.07, its

fourth straight day of gains and eclipsing the record closing

high it posted on Friday.

Futures on the fed funds rate have priced in a nearly 60%

chance of a 50 basis-point rate cut by the Fed on Wednesday,

rather than a quarter-point move, up from 45% last Friday.

"It's probably the first cut of many to come" and that gives

a boost to the resource-heavy Canadian market for a number of

reasons, said Allan Small, senior investment advisor at Allan

Small Financial Group with iA Private Wealth.

Zero-yielding gold and other dollar-denominated commodities

tend to benefit from lower U.S. interest rates. Gold rose

to a record high and oil settled 2.1% higher at $70.09 a

barrel.

The energy group advanced 1%, heavily-weighted financials

added 0.7% and technology ended 1% higher.

Bausch Health Companies ( BHC ) shares jumped 10.6% after a

report that its Bausch + Lomb unit was exploring sale

options.

Air Canada ( ACDVF ) shares gained 3.5% after the company said

on Sunday it has reached a tentative, last-minute deal with its

pilots' union over a new four-year collective agreement,

averting a near-term strike or lockout.

(Reporting by Fergal Smith in Toronto and Nikhil Sharma in

Bengaluru; Editing by Leroy Leo and Devika Syamnath)