(Updates with analyst comment, market open prices)

By Sanchayaita Roy

Sept 9 (Reuters) -

Canada's commodity-heavy main stock index edged higher on

Tuesday, led by energy and materials shares, as markets stayed

optimistic about a potential Bank of Canada interest rate cut

this month.

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

was up 0.11% at 29,060.74 points. The benchmark index

snapped an eight-session winning streak on Monday, closing with

marginal losses.

Energy stocks rose 1.4% as oil extended gains on

Tuesday after Israeli military attacked Hamas leaders in Qatari

capital Doha.

An index tracking mining shares rose 0.9% after

gold hit another record high driven by growing bets on a U.S.

rate cut.

Expectations that the BoC and the Federal Reserve will

resume their easing cycles have supported market sentiment since

last Friday, following disappointing jobs data from both the

U.S. and Canada.

Investors see nearly a 90% chance the BoC will lower its

benchmark rate from its current setting of 2.75% on September

17.

"The TSX is at near year highs, up over 17% year-to-date.

That proves that investors are confident now and looking ahead

three months down the line," said Michael Constantino, CEO of

online investment platform Webull Canada.

Markets were also assessing multiple deals on the mergers

and acquisitions front.

London-listed miner Anglo American and Canada's Teck

Resources announced their merger earlier on Tuesday, in what

would be the biggest mining sector M&A deal in over a decade.

Shares of the Canadian firm rose 14.2%.

Separately, U.S. refiner Phillips 66 said it will

acquire the remaining 50% stake in WRB Refining from Cenovus

Energy ( CVE ) for $1.4 billion, giving it full ownership of

two major U.S. refineries. Shares of Cenovus rose 3.1%.

"This recent M&A in the energy market is good overall for

for the Canadian economy," Constantino added.

Meanwhile, data showed the U.S. economy likely created

911,000 fewer jobs in the 12 months through March than

previously estimated, suggesting that job growth was already

stalling before President Donald Trump's aggressive tariffs on

imports.