CANADA STOCKS-TSX rallies as US inflation data boosts commodity prices

*

TSX ends up 1.9% at 33,073.71

*

For the week, the index adds 1.9%

*

Materials group jumps 4.4% as gold rallies

*

Magna soars 18.9% on profit forecast

(Updates at market close)

By Fergal Smith

Feb ?13 (Reuters) - Canada's main stock index rebounded on Friday, ?led by gains for Magna and commodity-linked shares, as softer-than-expected U.S. inflation data raised prospects ?of Federal Reserve interest rate cuts.

The S&P/TSX composite index ended up ?608.43 points, or 1.9%, at 33,073.71, recouping much of ?the previous day's sharp ?decline. For the week, the index added 1.9%.

U.S. consumer prices increased less than ?expected in January amid cheaper gasoline and ?a moderation in rental inflation.

"If inflation continues to trend lower over the next few months it makes a ?strong case for a June ?cut," said ?Ian Chong, a portfolio manager at First Avenue Investment Counsel Inc. "You are seeing a lot of these rate-sensitive sectors outperform today."

The Canadian ?10-year yield touched a two-month low of 3.234%.

"The markets have been ?beaten up the last couple of days, so perhaps we're getting a reprieve from this whole AI disruption, risk-off sentiment and dip buyers are reentering the market," Chong said.

The materials group, which includes metal ?mining shares, ?jumped 4.4% as the price of gold moved ?back above $5,000 per ounce on Fed rate-cut hopes.

Energy also posted gains, ?rising 1.8%. The price of oil settled 0.1% higher at $62.89 as the U.S. data offset supply concerns.

Pipeline operator Enbridge Inc (ENB) beat expectations for fourth-quarter profit and said it had sanctioned several projects to help meet surging demand for power across North America. Its shares were up 3.8%.

Magna International (MGA) shares soared 18.9% ?after the company forecast a strong annual profit, helped by cost-saving measures and steady demand for its auto parts.

Consumer discretionary was up 4% and ?technology ended 1.8% higher. (Reporting by Fergal ?Smith and Utkarsh Tushar Hathi; Editing by Shreya ?Biswas and Nia Williams)