TSX ends up 0.6 at 24,748.98
Energy sector advances 2
Materials group adds 0.7
Eight of 10 major sectors end higher

Reuters Canada39;s main stock index rose on Monday, led by gains for resource shares as the seasonal optimism of investors offset an uncertain outlook for the Canadian economy and domestic political uncertainty.

The Toronto Stock Exchange39;s SPTSX composite index ended up 149.50 points, or 0.6, at 24,748.98, extending its rebound from a sixweek low on Thursday.

U.S. markets also notched gains after a stopgap government funding bill averted a U.S. government shutdown.

We39;re seeing the beginnings of a 39;Santa Claus rally39; as stocks continue to show strong momentum into yearend, said Brandon Michael, senior investment analyst at ABC Funds, referring to the tendency for stocks to advance in the period around the Christmas Day holiday.

The TSX has climbed 18.1 since the start of the year. Still, that is less than the roughly 25 advance for the SP 500.

While the TSX is up today, it39;s lagging behind, and that39;s reflecting narrower breadth and a lack of exposure to highgrowth sectors like AI, robotics, and quantum computing in Canada, Michael said.

Additionally, the Canadian economy is facing challenges, not being helped by the current political situation, and the Canadian dollar is under pressure with the need for potentially more aggressive rate cuts.

Minutes from the Bank of Canada39;s December meeting showed the decision to opt for a…