Nov. 7 (Bloomberg) -- Canadian stocks gained as rising gold and oil prices lifted bullion miners and energy companies, helping the main equity index pare its weekly decline.

Barrick Gold Corp. and Canadian Natural Resources Ltd. led material and energy producers higher. Financial stocks gained, led by Manulife Financial Corp., as investors speculated borrowing costs may fall. Telus Corp. and Air Canada fell after reporting earnings that missed estimates.

The Standard & Poor's/TSX Composite Index rose 0.2 percent to 9,571.45 at 1:48 p.m. in Toronto, the first gain in three days. Canada's main benchmark, which derives three-fourths of its value from finance, energy and mining shares, has fallen 2 percent this week and 37 percent from a record in June on concern slowing global growth will crimp demand for the country's commodities.

``Today it's all about gold and oil,'' said Luc Girard, who helps oversee about $14.1 billion as director of Desjardins Securities' portfolio advisory group in Montreal. ``It's certainly too much of a negative ride that we've had.''

Gold headed for its first weekly gain in a month, pushing Barrick up 2.9 percent to C$28.29. The world's largest gold mining company also was raised to ``outperform'' from ``sector perform'' at RBC Capital Markets. Goldcorp Inc. rallied 2.5 percent to C$25.70. A benchmark of materials gained the most of 10 S&P/TSX indexes, climbing 1.2 percent.

Crude oil rose 1.3 percent to $61.54 a barrel in New York on speculation the Federal Reserve will cut interest rates after the U.S. Labor Department reported the jobless rate rose to the highest level since 1994 in October. Financial firms worldwide have posted more than $710 billion credit losses and writedowns, fueling concern the global economy will enter a recession.

Energy Stocks

Canadian Natural, the nation's third-largest energy company by market value, added 2.3 percent to C$54.60. EnCana Corp. climbed 0.2 percent to C$57.74.

Royal Bank of Canada, the nation's biggest lender, gained 0.8 percent to C$47.09. Sun Life Financial Inc. added 1.3 percent to C$30. After raising C$3 billion in loans and reporting its biggest profit decline in seven years, Manulife Financial rallied. North America's largest insurer by market value added 3.4 percent to C$26.20.

``Most of the industrialized nations around the world have been cutting rates, so we've seen a lot of people taking the steps to try to find the solution'' to the credit crisis, said Gareth Watson, who helps manage $65 billion as associate director at ScotiaMcLeod's portfolio advisory group, based in Toronto.

Unexpected Cut

The Bank of England unexpectedly cut its interest rate by 1.5 percentage points to 3 percent yesterday, as Switzerland's central bank and the European Central Bank cut their benchmark lending rates by 50 basis points. Futures on the Chicago Board of Trade indicate a 91 percent chance the U.S. Federal Reserve will cut in half its 1 percent target rate for overnight lending at its Dec. 16 meeting.

Brookfield Asset Management Inc. rallied 2.6 percent to C$21.33. The Toronto-based manager of $90 billion in assets such as power plants posted third-quarter profit that beat estimates as earnings in its commercial property business advanced.

Telus, Canada's second-largest telephone company, lost 2.9 percent to C$39.60 after posting sales and profit that missed estimates. The company increased spending to attract wireless subscribers as it lost more home lines. Rogers Communication Inc., Canada's biggest mobile-phone company, fell 4.3 to C$32.30.

Air Canada, the country's largest carrier, lost 11 percent to C$4.77 after posting a third-quarter loss on expenses tied to jet-fuel contracts and currency exchange. Analysts had expected a profit.

To contact the reporter on this story: Whitney Kisling in New York at wkisling@bloomberg.net.

Last Updated: November 7, 2008 14:38 EST