TSX ends higher as Middle East hopes help lift tech shares

By Rashika Singh and ‌Fergal Smith

TORONTO, ​March ​9 (Reuters) - Canada's main stock index recouped its earlier sharp declines on Monday, led by gains for technology shares, ‌as hopes rose that the war in the Middle East ⁠could soon end after investors had worried the conflict would lead to ‌another burst of inflation.

The S&P/TSX ‌Composite Index ended up 105.6 points, or 0.3%, at 33,189.32, after touching its lowest intraday level since February 6.

Wall Street ​stocks also clawed their way back from a steep selloff to close higher after U.S. President Donald Trump suggested that ⁠the U.S.-Israeli war on Iran could be close to ending.

The Trump administration is considering reducing ​oil sanctions on Russia to help cool a surge in global energy prices triggered by the U.S. and ​Israeli war on Iran, according to ‌three sources familiar with the planning.

U.S. crude oil futures fell 6% to $85.45 a barrel after earlier spiking ⁠to a near four-year high of $119.48.

"The key issue is how long the (oil) price shock lasts and how much damage it inflicts before easing ⁠as a prolonged spike in energy costs could revive inflation pressures and even ​raise the risk of stagflation," said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.

The technology sector gained 2.4%, with ‌shares of electronic equipment firm Celestica adding 7.1%.

The materials group, which includes metal mining shares, was ‌up 0.7% as copper prices climbed, while energy ended 0.4% higher.

Still, five ⁠of the 10 major sectors ‌ended lower, including heavily ​weighted financials, which lost 0.6%.

(Reporting by Fergal Smith in Toronto and Rashika Singh in Bengaluru; Editing by ‌Diti Pujara)

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