(Updates at market close)
Sep 11 (Reuters) – Canada’s main stock index clawed back some of its weekly decline on Friday, led by gains for technology shares, as a pullback in oil prices and the prospect of tighter U.S. monetary policy eased some concerns about the inflation outlook.
The S&P/TSX Composite Index ended up 191.21 points, or 0.5%, at 35,697.49, after hitting its lowest closing level in nearly six weeks on Thursday.
* For the week, the index was down 2.2%, its fourth straight weekly decline and the steepest since March.
* Wall Street also rallied on Friday as oil prices retreated and strong consumer price data reinforced expectations the Federal Reserve will raise interest rates next week to fight inflation.
* “Equities enjoyed a small relief rally,” Douglas Porter, chief economist at BMO Capital Markets, said in a note.
* “In part, this reflected a modest late-week pullback in oil prices … but it also may partly reflect the view that with the Fed now most likely to start tightening again, the medium-term outlook for inflation may be less fraught,” Porter said.
* U.S. crude oil futures settled 2.4% lower at $100.05 a barrel after a report that foreign ministers in the Middle East are trying to work out a temporary deal with Iran to manage shipping through the Strait of Hormuz.
* The technology sector rose 3.6%, with shares of electronic equipment company Celestica gaining 6.6%.
* Industrials added 0.7% and heavily weighted financials ended 0.6% higher. The materials group, which includes metal mining shares, was up 1.1% as gold rallied.
* Four of the 10 major sectors ended lower, including energy. It was down 0.7%.
(Reporting by Fergal Smith in Toronto and Utkarsh Hathi and Darshan Kumar in Bengaluru; Editing by Sahal Muhammed and Will Dunham)
