• TSX closes up 0.36%, ends five-day losing streak
• Rally led by financials, consumer goods, healthcare
• Analyst says rise shows more risk-on sentiment
• Brent crude drops by 5%, pulling energy stocks down

Oct 28 (Reuters) - A rally across an array of sectors from consumer goods to healthcare and financials to technology helped Canada's main stock index to reverse a five-day losing streak on Monday.

The S&P/TSX composite index (.GSPTSE) , opens new tab ended the day up 88.96 points, or 0.36%, at 24,552.63, almost recouping losses of the last two trading sessions.

The advance, which was largely broad-based, was primarily led by healthcare, financials and consumer goods, each of which were either above or just around 1% up.

Analysts said consumer confidence was growing stronger on the back of falling inflation and easing interest rates, which prompted buying activity across sectors despite a drop in crude oil prices.

While healthcare has minimal weighting on the composite index, financials (.SPTTFS) , opens new tab contribute nearly a third of the index. Consumer goods, including essentials and non-discretionary goods, has close to around 8% weight.

The rally is "emblematic of a shift toward more risk-on sentiment and growing investor confidence," said Brandon Michael, senior investment analyst at ABC Funds.

The rise came even as energy stocks (.SPTTEN) , opens new tab, which are another TSX heavyweight sector led by a clutch of oil companies, lost close to 0.9% of its value due to a drop in crude oil prices.

Brent crude price plunged by over 5% on Monday after Israel's limited retaliatory strike against Iran did not disrupt energy supplies.

The reversal of losses in TSX comes right at the beginning of what most analysts see as two crucial weeks packed with economic data, corporate earnings and the U.S. elections.

"The next two weeks are very pivotal for the stock market," Michael said.

Quarterly earnings are due this week from U.S. heavyweights including Apple (AAPL.O) , opens new tab, Microsoft (MSFT.O) , opens new tab, Alphabet (GOOGL.O) , opens new tab, Amazon (AMZN.O) , opens new tab, and Meta (META.O) , opens new tab among others, and the U.S. Presidential election on Nov. 5.

"How these catalysts play out will define the market's path forward into year end and 2025," he said.

Domestic traders will also watch results from companies such as Canadian Natural Resources (CNQ.TO) , opens new tab and Enbridge (ENB.TO) , opens new tab as well as Thursday's August GDP report - the first major dataset since the Bank of Canada's half-point rate cut last week.

This week's U.S. Personal Consumption Expenditures index, along with the country's third-quarter GDP data and non farm payrolls report could shed more light on the Federal Reserve's monetary policy move next week.

With the U.S. presidential campaign approaching its final stretch, investors evaluated the prospects of Donald Trump returning to the White House as market bets favored the former president's reelection.

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https://www.reuters.com/markets/tsx-futures-edge-lower-ahead-weeks-earnings-data-2024-10-28/