CANADA STOCKS-TSX snaps losing streak as U.S. inflation data supports rate cut bets

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TSX ends up 0.6% at 31,440.85

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Industrials and financials both add 0.9%

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Energy declines 1.5%

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Curaleaf (CURLF) tumbles 32%

(Updates at market close)

By Fergal Smith

Dec 18 (Reuters) - Canada's main stock index rose on Thursday as investors cheered softer-than-expected U.S. inflation data and recent positive signs on the ?domestic economy.

The S&P/TSX Composite index ended up 190.83 points, or 0.6%, at 31,440.85 after four straight days ?of declines, with the market moving back in reach of the record closing ?high it posted last Thursday.

"Overall, it seems like it's ?a pretty good ?situation in Canada," said Kevin Headland, co-chief investment strategist at Manulife Investments.

"The Canadian economy is probably doing ?better than many expected. We're seeing inflation ?right around target. The Bank of Canada is on pause right now. Sentiment is pretty strong."

Canadian retail sales data, due ?on Friday, could offer additional clues on ?the ?state of the domestic economy. Economists expect a flat month-over-month reading after a decline of 0.7% in September.

Wall Street's main indexes also closed higher ?as U.S. consumer prices increased less than expected in November, feeding expectations for Federal Reserve interest rate cuts. Cyclical sectors were among the biggest gainers on the TSX, with industrials and heavily weighted financials both adding 0.9% and consumer discretionary ending 1% higher.

Canada's financial regulator said it was maintaining the amount ?of ?additional capital the country's largest lenders must hold, saying the big six banks are resilient in a changing risk environment. Energy was a drag, ?falling 1.5%. The price of oil settled 0.4% higher $56.15 a barrel as investors assessed the likelihood of further U.S. sanctions against Russia and the supply risks posed by a blockade of Venezuelan oil tankers. U.S. President Donald Trump was set to sign an order recommending the loosening of federal regulations on marijuana, according to senior administration officials, ?a move that could further reverse decades of tough-on-weed policy. Still, shares of cannabis firm Curaleaf Holdings Inc (CURLF) dropped 32%, giving back much of its recent sharp gains. (Reporting by Fergal Smith in ?Toronto and Avinash P In Bengaluru; Editing by Leroy Leo and Alistair Bell)