• TSX ends up 0.2% at 25,635.73
• Materials group climbs 2.7%
• Energy adds 0.5%; oil settles 2.7% higher
• Scotiabank falls 3.4% after earnings miss

Dec 3 (Reuters) - Canada's main stock index rose on Tuesday, with gains for resource shares offsetting disappointing results from Bank of Nova Scotia (BNS.TO) , opens new tab as positive momentum since the outcome of the U.S. presidential election in November continued.

The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab ended up 45.40 points, or 0.2%, at 25,635.73, stopping just short of the record closing high it posted on Friday.

In November, the TSX added 6.2%, its biggest monthly gain in one year.

"The post-election relief rally continues," said Matt Skipp, president of SW8 Asset Management. "Optimism about a more business friendly environment in the United States is driving markets ever higher."

Canada sends about 75% of its exports to the United States, including oil , which settled 2.7% higher at $69.94 a barrel as Israel threatened to attack the Lebanese state if its truce with Hezbollah collapses.

Energy added 0.5% and the materials group, which includes fertilizer companies and metal mining shares, was up 2.7%. Copper prices climbed 1.8% and gold edged higher.

Bank of Nova Scotia (BNS.TO) , opens new tab shares fell 3.4% as the bank reported fourth-quarter earnings below analysts' expectations, warning about modest economic growth in key international markets and drawing investors' attention to credit woes as consumers struggle to pay back high-interest loans.

"Interest rates are too high in Canada and they've got to come down. Everybody is loaded with debt and it hurts," Skipp said.

The Bank of Canada has lowered its benchmark interest rate by one and a quarter percentage points since June to 3.75% but borrowing costs are still above the 2.75% rate the central bank estimates for the neutral setting - the level that neither restricts nor stimulates the economy.

The heavily weighted financials sector was down 0.5%, while industrials ended 0.4% lower as railroad shares fell.

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https://www.reuters.com/markets/tsx-futures-rise-energy-boost-scotiabank-kicks-off-domestic-bank-earnings-2024-12-03/