TSX rises for fourth day on supersized Fed rate cut bets

By Nikhil Sharma and Fergal Smith

(Reuters) - Canada's commodity-linked main stock index rose to an all-time high on Monday, led by gains for energy and technology shares, as expectations rose the Federal Reserve would cut U.S. interest rates by half a percentage point at a policy decision this week.

The Toronto Stock Exchange's S&P/TSX composite index ended up 133.42 points, or 0.6%, at 23,702.07, its fourth straight day of gains and eclipsing the record closing high it posted on Friday.

Futures on the fed funds rate have priced in a nearly 60% chance of a 50 basis-point rate cut by the Fed on Wednesday, rather than a quarter-point move, up from 45% last Friday.

"It's probably the first cut of many to come" and that gives a boost to the resource-heavy Canadian market for a number of reasons, said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.

Zero-yielding gold and other dollar-denominated commodities tend to benefit from lower U.S. interest rates. Gold rose to a record high and oil settled 2.1% higher at $70.09 a barrel.

The energy group advanced 1%, heavily-weighted financials added 0.7% and technology ended 1% higher.

Bausch Health Companies shares jumped 10.6% after a report that its Bausch + Lomb unit was exploring sale options.

Air Canada shares gained 3.5% after the company said on Sunday it has reached a tentative, last-minute deal with its pilots' union over a new four-year collective agreement, averting a near-term strike or lockout.

(Reporting by Fergal Smith in Toronto and Nikhil Sharma in Bengaluru; Editing by Leroy Leo and Devika Syamnath)