CANADA STOCKS-TSX rallies as Canada gains some tariff relief

By Fergal Smith

March 5 (Reuters) - Canada's main stock index rebounded from a seven-week low on Wednesday, led by gains for metal mining and consumer discretionary shares, as copper prices jumped and Canada gained some relief from hefty U.S. tariffs.

The S&P/TSX composite index .GSPTSE ended up 298.82 points, or 1.2%, at 24,870.82, after posting on Tuesday its lowest closing level since January 13.

President Donald Trump will exempt automakers from his punishing 25% tariffs on Canada and Mexico for one month as long as they comply with the terms of an existing free trade agreement, the White House said.

Trump is also open to hearing about other products that should be exempted from the tariffs, which took effect Tuesday, the White House said.

"The prevailing sentiment appears to be that the U.S. will not significantly disrupt trade with Canada given our close economic connection," said Victor Kuntzevitsky, a portfolio manager at Stonehaven, Wellington-Altus Private Counsel.

"Our view is that the trade dispute will get worse before it will get better."

The downturn in Canada's services economy deepened in February as firms avoided committing to new business in anticipation of a trade war, S&P Global's Canada services PMI data showed.

The materials group, which includes fertilizer companies and metal mining shares, climbed 3.4% as China's move to unlock more fiscal stimulus and a proposed 500 billion euro infrastructure fund in Germany contributed to higher copper prices.

The consumer discretionary sector added 2%, helped by gains for auto parts companies. Magna International Inc MG.TO climbed 6.9% and Linamar Corp LNR.TO ended 4.1% higher.

Technology rose 1.8% and industrials were up 1.2% higher. Shares of business aircraft manufacturer Bombardier Inc BBDb.TO jumped nearly 10%.

Energy was the only major sector to lose ground, falling 0.8%, as the price of oil settled 2.9% lower at $66.31 a barrel.