By Fergal Smith
(Reuters) - Toronto's main stock rose on Monday as energy and materials shares rallied, while investors awaited domestic inflation data and an interest rate decision from the Federal Reserve this week.
The Toronto Stock Exchange's S&P/TSX composite index ended up 0.9%, or 176.50 points, at 19,562.38, after posting on Friday its lowest closing level since Sept. 7.
Wall Street's main indexes also rose as investors waited to see how aggressive the Fed would be at Wednesday's rate announcement. It follows hotter-than-expected U.S. inflation data last week that rattled investors.
Canadian inflation data, due on Tuesday, could help guide expectations for additional interest rate hikes by the Bank of Canada.
"The markets reacted negative to U.S. CPI so hopefully that de-risks the potential volatility from the Canadian release," said Angelo Kourkafas, investment strategist at Edward Jones Investments.
"We are looking at interest rate expectations which have moved higher, so we don't expect it to be much of a negative catalyst for the markets given what transpired last week."
The materials sector, which includes precious and base metals miners and fertilizer companies, added 2.5%. It was led by gold miner Kinross Gold Corp, which gained 10.8% after the company announced a $300-million share buyback plan.
The energy sector advanced 0.7% as oil prices settled 0.7% higher at $85.73 a barrel. Traders balanced fears that global demand could slow with worries about tight supplies.
Heavily weighted financials also rose 0.7%, while industrials ended up 0.9%.
(Reporting by Fergal Smith; Additional reporting by Sruthi Shankar and Shashwat Chauhan in Bengaluru; Editing by Vinay Dwivedi and Richard Chang)