Updates at market close

By Fergal Smith

June 26 (Reuters) - Canada's commodity-linked main stock index rose on Thursday to a record high as copper prices jumped and investors grew optimistic that the Federal Reserve would resume its easing campaign.

The S&P/TSX composite index .GSPTSE ended up 185.63 points, or 0.7%, at 26,751.95, eclipsing Tuesday's record closing high.

Wall Street also rose as the Israel-Iran cease-fire continued to hold and a raft of economic indicators appeared to support the case for the Fed's lowering borrowing costs this year.

"While the overall TSX is performing strongly, we're certainly seeing a divergence between sectors," said Victor Kuntzevitsky, a portfolio manager at Stonehaven, Wellington-Altus Private Counsel. Positive investor sentiment for gold mining shares has contributed significantly to the TSX's gains, he added.

The materials sector, which includes metal mining shares, rose 1.7% as the price of gold XAU=, a major safe-haven asset, remained elevated and copper HGc1 climbed more than 3%.

A three-year low for the U.S. dollar .DXY against a basket of major currencies gave copper a boost. Shares of copper producer Teck Resources Ltd TECKb.TO ended 7.9% higher.

Industrials added 0.9% and heavily weighted financials were up 0.8%, while technology and consumer staples were the only two major sectors to end lower.

"We are shying away from companies that are heavily tied to the Canadian consumer," Kuntzevitsky said. "We still see the Canadian consumer as stretched."

Canadian home prices are set to decline 2% this year and stagnate in 2026, a significant downgrade from expectations of modest rises just three months ago, according to a Reuters poll of property experts who showed significant concern over the U.S.-led trade war.

(Reporting by Fergal Smith in Toronto and Twesha Dikshit and Sukriti Gupta in Bengaluru; Editing by Leslie Adler)

((fergal.smith@thomsonreuters.com; +1 647 480 7446))