• TSX ends up 1.8% at 20,024.63
  • For the week, the index gains 0.5%
  • Energy rallies 2.8%; oil settles 2.3% higher
  • Financials advance 2.1%

June 2 (Reuters) - Canada's main stock index posted on Friday its biggest gain in seven months as the passing of the U.S. debt ceiling bill boosted investor sentiment, with energy and financial shares among the biggest winners in a broad-based rally,

The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) ended up 352.38 points, or 1.8%, at 20,024.63, its biggest advance since November 2022. For the week, it was up 0.5%.

U.S. stocks also rallied after a labor market report showed moderating wage growth in May, indicating the Federal Reserve may skip a rate hike in two weeks, and as investors cheered a Washington deal to lift the U.S. debt ceiling, avoiding a catastrophic default.

"It is all these little factors that the market is holding on to, looking for any reason to be bullish and they're finding it," said Philip Petursson, chief investment strategist at IG Wealth Management. "It's definitely risk-on today."

The energy sector rallied 2.8% as oil settled 2.3% higher at $71.74 a barrel ahead of a meeting of OPEC and its allies this weekend.

Suncor Energy Inc (SU.TO) was up 3.2% after the company told employees it plans to cut 1,500 jobs this year.

"It appears that some activist investors are trying to make Suncor more efficient over the long term by getting them to cut costs and that's good to see for investors," said Greg Taylor, chief investment officer at Purpose Investments.

Heavily-weighted financials rose 2.1% and industrials were up 2.2%.

The real estate sector also advanced 2.2% as data showed home prices in the Greater Toronto Area increased in May from April and sales rose sharply.

In contrast, shares of Canaccord Genuity Group Inc(CF.TO) fell 6.8% after a management-led consortium said its C$1.13 billion ($842 million) take-private offer may not result in a deal.

Reporting by Fergal Smith in Toronto and Johann M Cherian in Bengaluru; Editing by Shweta Agarwal, Marguerita Choy and Diane Craft

Our Standards: The Thomson Reuters Trust Principles.

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