Sept 3 (Reuters) - Canada's main stock index rose on Thursday, with miners leading broader gains, after U.S. Fed Governor Christopher Waller signaled patience on interest rates, prompting markets to pull back bets for a September rate hike.
The S&P/TSX Composite Index (.GSPTSE), rose 0.8% to 36,385.30 at 09:53 a.m. ET, on track for its biggest one-day jump in about a month.
The materials sector (.GSPTTMT), housing Canadian miners rose 1.2%, boosting the index, as gold, silver and copper rose between 1% and 2% each.
Discovery Mining (DSV.TO), gained 3.8%, Lundin Gold (LUG.TO), added 3% while Barrick Mining (ABX.TO), was up 1.7%.
Federal Reserve Governor Christopher Waller said on Thursday he's inclined to be patient on rate policy while watching to see if price pressures ease.
Following Waller's comments, traders trimmed bets on a Federal Reserve interest rate hike, pricing in a 54% chance of an increase in September, down from about 62% earlier.
The 10-year Treasury yield was at 4.752%, while the Canadian equivalent was trading at 3.775%, both retreating from their 2025 highs.
Meanwhile, growth-oriented technology stocks (.SPTTTK), gained 2.5%.
Employment reports in Canada and the U.S. on Friday could further influence expectations of how central banks will approach monetary policy going ahead.
"There are signs of stabilisation in the bond market and in stocks... This does not mean that inflation concerns have gone away or that bonds won't sell off again. After a rough start to September, it could be time to take a breather," said Kathleen Brooks, research director at XTB.
On Wednesday, the Bank of Canada held interest rates but Governor Tiff Macklem said policymakers were prepared for multiple hikes if inflation remained too high.
Among stocks, Thomson Reuters (TRI.TO), rose 4.5%, tracking gains in U.S. software stocks.
Data showed Canada's trade surplus narrowed sharply in July, just weeks before Washington's new 50% tariffs begin to show up in statistics.
Reporting by Purvi Agarwal in Bengaluru; Editing by Diti Pujara
