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CANADA STOCKS-TSX kicks off second-half trading on upbeat note

July 4 (Reuters) - Canada's resources-heavy stock index rose on Monday as oil prices gained and investors returned from a long weekend to buy riskier assets that have been battered by concerns over a global economic slowdown.

All the major sub-sectors barring technology rose. The energy index gained 2.6% as crude prices climbed more than 1% on concerns of tight supply amid lower OPEC output, unrest in Libya and sanctions on Russia.

At 10:05 a.m. ET (14:05 GMT), the Toronto Stock Exchange's S&P/TSX composite index gained 0.88% to trade at 19,026.77.

After a market holiday on Friday for Canada Day, trading across the board was thinned by a U.S. holiday on Monday.

Canada's main equity benchmark recorded its biggest quarterly decline since the first quarter of 2020 last week on fears that harsh steps by major central banks to tame inflation will cause an economic downturn.

Money markets see about an 80% chance of a 75-basis point interest rate increase by the Bank of Canada in July after surprisingly high inflation in May showed consumer prices at a 40-year high. With the price of everyday essentials surging, the risk of inflation becoming entrenched is growing.

The S&P Global Canada Manufacturing Purchasing Managers' Index showed on Monday factory activity lost some momentum in June as inflation pressures and material shortages held back production and firms became less optimistic about future output.

However, a broad rebound in global stocks lifted Toronto markets on Monday, with the financials sector up 0.5% and the industrials sector rising 0.6%.

The materials sector, which includes precious and base metals miners and fertilizer companies, added 1.7%. (Reporting by Sruthi Shankar in Bengaluru, editing by Deepa Babington)