Updates with morning prices

By Sanchayaita Roy

June 2 (Reuters) - Canada's commodity-heavy main stock index rose on Monday, helped by gains in energy and metal miners' shares.

The S&P/TSX composite index .GSPTSE was up 0.42% at 26,281.03 points.

The materials group .GSPTTMT gained 4.2%, tracking higher gold prices. The energy subindex .SPTTEN rose 1.9% as oil prices jumped about 4% after producer group OPEC+ kept output increases in July at the same level as the previous two months.

Conversely, the healthcare sector .GSPTTHC fell 2.3%, with cannabis firm Tilray Brands TLRY.TO leading the losses, down 5.1%.

Global equities edged lower after U.S. President Donald Trump said on Friday he planned to increase tariffs on imported steel and aluminum to 50% from 25% starting Wednesday.

The European Union said it was prepared to retaliate, setting the stage for an intensified trade war.

"Canada has benefited from a softening of the harsh tariff talk... the problem is, we haven't had any trade deals yet and if we don't get any as we get closer to the beginning of July, which is when the 90-day pause is set to expire, that could make for some volatility towards the end of June", said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.

The Toronto Stock Exchange on Friday posted its biggest monthly rise of 5.4% since November, helped by easing global trade tensions.

Investor focus this week will be on the Bank of Canada's interest rate decision due on Wednesday and the Canadian employment report, expected Friday.

The central bank is likely to hold the rate at 2.75%, according to the majority of economists polled by Reuters.

On the data front, Canadian manufacturing activity contracted for a fourth straight month in May as trade uncertainty led firms to shed workers at the fastest rate since early in the pandemic.

(Reporting by Sanchayaita Roy; Editing by Shreya Biswas)

((Sanchayaita.Roy@thomsonreuters.com;))