(Updates with analyst comment, mid-morning shares)

By Twesha Dikshit

Sept 26 (Reuters) - Canada's main stock index advanced

with broad-based gains after key domestic GDP and in-line U.S.

inflation data added to investor optimism.

Toronto's S&P/TSX composite index rose 0.3% to

29,817.85 points by 09:55 a.m. ET (1355 GMT), and was on track

for eight consecutive weeks of gains.

Canada's monthly GDP rebounded from three months of

contraction to grow by 0.2% in July, with mining, manufacturing

and wholesale trade boosting growth.

"With a 0.2% print, we're in a very slow growth economy

... so I would agree that there would be implications on

interest rates here," said Robert Gill, portfolio manager at

Fairbank Investment Management.

" has been quite strong recently, although just in

the last week it's been pulling back a bit. Some of the market

participants are simply just locking in some gains here. It's

been a very heated market and they're rotating out of some

overextended sectors, in particular technology."

The technology index led the declines, with

heavyweight e-commerce firm Shopify ( SHOP ) falling 1%.

Consumer non-cyclicals and gold miners

were among the top gainers on the day.

Among individual stocks, Perpetua Resources

jumped 17.3% after saying it was in talks with Glencore ( GLCNF )

, Trafigura, Clarios and Sunshine Silver

about partnerships to refine antimony in the U.S.

Bus and coach maker NFI Group ( NFYEF ) dropped 12% after

providing updates for the third quarter of the year and saying

it was actively responding to numerous bids.

U.S. Personal Consumption Expenditures index was in-line

with expectations, increasing bets that the Federal Reserve

might further lower rates this year.

U.S. President Donald Trump announced a fresh set of tariffs

on branded drugs, heavy-duty trucks and furniture that will come

into effect next week.

Meanwhile, Canadian Prime Minister Mark Carney met his

British counterpart Keir Starmer to discuss deepening trade

ties.