TSX inches up; investors cautious ahead of US data

By Nikhil Sharma

(Reuters) -Canada's main stock index edged higher on Monday, helped by sharp rise in resources-linked shares, while investor caution ahead of a data-packed week in the United States contained gains.

At 10:25 a.m. ET (14:25 GMT), the S&P/TSX composite index was up 64.21 points, or 0.29%, at 22,375.51.

Heavyweight energy stocks jumped 2% to lead the sectoral gains, after easing U.S. recession fears and supply risks in Middle East boosted oil prices. [O/R]

Canada's materials sector also logged gains, pulled up by a 62% gain in Osisko Mining.

The company's shares jumped to the top of the TSX after South Africa-based Gold Fields Ltd agreed to acquire the Canadian miner for C$2.16 billion ($1.57 billion).

Barrick Gold shares rose 5.8% as the gold miner beat Wall Street estimates for second-quarter profit, adding to the sector's rise.

Other miners also tracked gains in gold and copper prices. [GOL/] [MET/L]

Rate-sensitive real estate and utilities sectors logged losses, dropping 0.9 and 0.8%, respectively.

Investors were cautious ahead of a host of datasets expected in the United States this week, including the U.S. consumer price index (CPI) due on Wednesday to gauge the Federal Reserve's stance on its monetary policy.

Markets are hoping for a rate cut at the U.S. central bank's September meeting.

"Ideally, we don't want to see too soft data to show that the U.S. is falling into recession," said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.

"But at the same time we don't want to see strong data which would show us persistent inflation."

Canadian markets logged weekly gains amid volatility last week, when recessionary fears in the United States and the unwinding of carry trades funded by the Japanese yen had sparked a global equity sell-off.

However, those recession-related concerns were quelled by a favourable U.S. jobs report as overblown later in the week.

(Reporting by Nikhil Sharma in Bengaluru; Editing by Shreya Biswas)