CANADA STOCKS-TSX gains as tame U.S. inflation data supports rate cut bets

By Avinash P

Dec 18 (Reuters) - Canada's main stock index gained on Thursday, after a softer-than-expected U.S. inflation print strengthened market expectations for Federal Reserve interest rate cuts.

The S&P/TSX Composite index rose 1% to 31,567.25 points by 10:06 a.m. ET, rebounding after four straight days of modest losses.

Cannabis firms Curaleaf (CURLF), Canopy Growth (CGC) and Tilray jumped 2%-21.5%, extending their recent rally, fueled by expectations that U.S. President Donald Trump will sign an executive order easing federal regulations on marijuana.

The technology index led gains across Canadian sectors, mirroring Wall Street peers, after chipmaker Micron Technology's (MU) upbeat forecast.

Data showed U.S. consumer prices increased less than expected in the year to November, although economists expect an acceleration in December. Investors are betting that the Fed will ease borrowing costs by about 64 basis points by the end of next year, according to LSEG data.

Choppiness in oil prices due to geopolitical concerns and a selloff on Wall Street this week have weighed on sentiment, putting Toronto's main stock index on course for a weekly loss.

Still, the commodity-heavy index remains on track for its best year since 2009, with a nearly 27% gain, driven by a surge in precious metal prices and signs of resilience in the Canadian economy despite the country's tariff war with the U.S.

Orla Mining (ORLA) climbed 4%, hitting a fresh record high after the miner confirmed high-grade gold mineralization extended beyond its current underground operations at Musselwhite Mine. (Reporting by Avinash P In Bengaluru; Editing by Leroy Leo)