Jan 7 (Reuters) - Canada's main stock index rose on Tuesday, lifted by mining and energy shares, while investors assessed domestic data and braced for political changes after Prime Minister Justin Trudeau announced his plan to resign.
The S&P/TSX composite index (.GSPTSE), rose 0.4%, or 99.04 points, to 25098.83.
Canadian economic activity expanded at its fastest pace in five months in December as employment and inventories climbed, Ivey Purchasing Managers Index (PMI) data showed on Tuesday.
Trade figures also released on the day showed Canada recorded a ninth consecutive monthly trade deficit in November, albeit smaller than expected.
Tuesday's stock index rise comes a day after Trudeau said he would step down in the coming months after nine years in power.
"The government is trying to sort itself out. So the markets are going to be extremely sensitive to any sort of news coming when valuations are high," said Michael Sprung, president at Sprung Investment Management
"One of the keys is going to be the extent of tariffs after the inauguration of Mr. Trump."
U.S. President-elect Donald Trump, who is set to be inaugurated on Jan. 20, has threatened potentially crippling tariffs on Canada.
On Tuesday, the materials sector (.GSPTTMT), rose nearly 2% as weakness in the U.S. dollar pushed gold prices 1% higher. Energy (.SPTTEN), sector also rose 1.6% on the day as oil prices reversed early declines.
But information technology (.SPTTTK), lost 1.2%, dragged by the blockchain farm operator Bitfarms falling 6.5%.
Stateside, Wall Street's main indexes fell on Tuesday after a batch of upbeat economic data stoked uncertainty among investors about the pace of U.S. monetary policy easing cycle.
Reporting by Ragini Mathur in Bengaluru; Editing by Sahal Muhammed
