* TSX ends up 0.6% at 32,957.95

* Materials group adds 3.1% as gold rises

* Industrials and financials both add 0.8%

(Updates at market close)

By Fergal Smith

April 1 (Reuters) - Canada's main stock index rose to a

three-week high on Wednesday as investors grew optimistic the

Middle East war would soon end, though a fall in oil prices

capped gains.

The Toronto Stock Exchange's S&P/TSX Composite Index

ended up 189.91 points, or 0.6%, at 32,957.95, adding

to sharp gains on Tuesday and marking its highest closing level

since March 11.

In March, the TSX fell 4.6%, which was its steepest monthly

decline since May 2023, as investors globally worried the

conflict in the Middle East could raise inflation pressures.

Wall Street also rose on Wednesday after U.S. President

Donald Trump told Reuters the U.S. will be "out of Iran pretty

quickly" and could return for "spot hits" if needed.

"We continue to see some optimism that the end of the war is

near," said Angelo Kourkafas, a senior global investment

strategist at Edward Jones.

"The key message really is that though we remain in a highly

uncertain environment, so far the data points to relatively

steady economic growth ... Rising earnings also can provide

support."

Data on Tuesday showed Canadian GDP rose by 0.1% in January

on a monthly basis, eclipsing estimates for a flat reading. An

advance estimate showed the economy expanding by a further 0.2%

in February.

The materials group, which includes metal mining

shares, rose 3.1% as losses for the safe-haven U.S. dollar

helped drive up the price of gold and copper.

Not all miners posted gains. Shares of Ivanhoe Mines Ltd ( IVPAF )

dropped 11.6% after the company said on Tuesday an

updated independent study lowered near-term production estimates

for the company's copper complex in the Democratic Republic of

Congo.

Both industrials and heavily weighted financials

ended 0.8% higher.

Of 10 major sectors, just energy lost ground. It

fell 3.8%, giving back some of its recent advance, as the price

of WTI oil settled 1.2% lower at $100.12 a barrel.