CANADA STOCKS-TSX hits record high on hopes for larger US rate cut

Updated at 10:18 a.m. ET/1418 GMT

By Nikhil Sharma

Sept 13 (Reuters) - Canada's main stock index hit a record high on Friday in a broad-based rally led by mining stocks, as investors assessed the overnight spike in chances of a hefty U.S. interest rate cut week.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 143.04 points, or 0.61%, at 23,618.73 and was set to extend its record run.

At least 11 sectors on the index gains as the market reacted to the expectation of a bigger rate cut by the Federal Reserve at its Sept. 18 policy meeting.

Leading sectoral gains was materials .GSPTTMT, which tracked gold prices that hit a record high on expectations of U.S. interest rate cuts.

Leading the index were First Majestic Silver Corp , Alamos Gold Inc​ AGI.TO and Ballard Power Systems Inc​ BLDP.TO, up between 3% and 4%.

Graham Priest, investment adviser at BlueShore Financial, said a larger U.S. cut "would be a strong stimulus for the Canadian economy and Canadian markets" as "money would be flowing into gold".

"Rate decreases would be quite positive for a resource-based economy".

Expectations for a mighty half-point U.S. rate cut took a dramatic turn after reports from the Financial Times and Wall Street Journal called the decision "a close call".

Former New York Fed President Bill Dudley pointed at a strong case for a 50-bps interest rate cut which further added to the uncertainty around week' policy decision.

Traders' bets of a 50-basis point stand at 47%, compared with 14% on Thursday, CME's FedWatch Tool showed.

Back home in Canada, investors digested wholesale trade data that grew by 0.4% in July from June, while Canadian industries' capacity ran at 79.1% of capacity in the second quarter of 2024.

TSX's heavyweight, the energy sector .SPTTEN, rose 0.8%, while the financials sector .SPTTFS gained 0.4%.

(Reporting by Nikhil Sharma in Bengaluru; Editing by Maju Samuel)

((Nikhil.Sharma@thomsonreuters.com;))