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TSX up 0.6%, set for about 1% weekly rise

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Utilities, financials lead gains

(Updates with market opening prices)

By Ragini Mathur

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

Friday, as government bond yields eased around the world, but

focus is likely to shift to policy changes from U.S.

President-elect Donald Trump when he takes office next week.

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

was up 0.6% at 24,983.1 points and is set for a near

1% advance for the week.

Canadian government bond yields fell across the curve,

with the 10-year note last at 3.309%, tracking its

U.S. counterparts lower.

Global government bond yields have fallen from highs

this week as markets reacted to easing U.S. core inflation data,

which kept rate cuts by the Federal Reserve on the table.

Most sub-sectors were trading higher, with information

technology up 0.2% and the heavyweight financials

up 0.7%.

Rate-sensitive real estate climbed 0.9%,

while utilities, often traded as a bond proxy owing

to their stable income regardless of economic situation, added

0.9%.

"The real question comes up with what happens next week,

once the new administration (in the U.S.) takes hold as the

proposed tariffs will be detrimental to all the economies to

some extent but we are particularly vulnerable here in Canada,"

said Michael Sprung, president at Sprung Investment Management.

Investors will also look to next week's domestic inflation

data for more clarity on the Bank of Canada's policy rate path.

The Canadian central bank is expected to cut rates by 25 basis

points at its Jan. 29 meeting, a Reuters poll of economists

showed.

In company news, TD Bank Group said CEO-designate

Raymond Chun would be appointed to the role on Feb. 1, months

earlier than initially planned. Its shares were up 2.6%.

($1 = 1.4404 Canadian dollars)