TSX notches record high amid 'good vibes' on rate cuts

(Restores dropped word "high" in second bullet)

By Fergal Smith

(Reuters) -Canada's main stock index rose to a record high on Wednesday, led by technology shares, as investors cheered prospects of lower borrowing costs globally and despite a looming work stoppage at Canada's two main railroad companies.

The S&P/TSX composite index ended up 84.29 points, or 0.4%, at 23,121.73, eclipsing the record closing high it set on Monday.

"We are in a rising-tide market," said Barry Schwartz, chief investment officer at Baskin Wealth Management. "There are some good vibes out there from the fact that interest rates are going to be cut globally and the economy is still so far so good."

Federal Reserve officials last month were strongly leaning toward a rate cut at their September policy meeting and several of them would have even been willing to reduce borrowing costs immediately, according to the minutes of the July 30-31 gathering.

Eight of 10 major sectors on the TSX notched gains, led by technology, which advanced 1.2%. The materials group, which includes fertilizer companies and metal miners added 0.7% as copper prices climbed.

Canadian Pacific Kansas City Ltd and Canadian National Railway Co are set to lock out around 10,000 of their Canadian unionized workers on Thursday at 12:01 a.m. ET (0401 GMT), starting an unprecedented simultaneous work stoppage that would grind almost all railway freight movement in the country to a halt.

Shares of both companies ended higher.

"It's going to affect their earnings in Q3, unfortunately, but I don't think anybody expects it (the strike) would go very long," Schwartz said.

Energy was one of the sectors that ended lower, dipping 0.1%, as the price of oil settled 1.7% lower at $71.93 a barrel, extending its recent decline.

(Reporting by Fergal Smith in Toronto and Nikhil Sharma in Bengaluru; editing by Jonathan Oatis)