June 20(Reuters) - Mining stocks drove Canada's main stock index to a seven-week high on Thursday as gold prices surged following a more dovish than expected stance from the U.S. Federal Reserve.
* At 9:40 a.m. ET (13:40 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 70.9 points, or 0.43%, at 16,582.69.
* The index was set to rise for the sixth consecutive session.
* Meanwhile, the U.S. benchmark S&P 500 index .SPX hit a record intraday high as investors took comfort from signs that the Fed could cut interest rates as soon as next month to counter growing risks to global and domestic growth. .N
* Seven of the TSX's 11 major sectors were higher, led by the materials sector .GSPTTMT which added 2.2%.
* The sector, which includes precious and base metals miners, was helped by gold prices XAU= , which hit a more than five-year high. Silver prices XAG= also rose more than 1.5%. GOL/ MET/L
* The energy sector .SPTTEN also climbed 1.6% tracking a surge in oil prices as Iran shot down a U.S. military drone, raising fears of a military confrontation between the two countries.
* U.S. crude CLc1 prices were up 4.5% a barrel, while Brent crude LCOc1 added 3.4%. O/R
* The interest-rate sensitive financials sector .SPTTFS slipped 0.1%.
* On the TSX, 167 issues were higher, while 67 issues declined for a 2.49-to-1 ratio favouring gainers, with 28.78 million shares traded.
* The largest percentage gainers on the TSX were Iamgold Corp IMG.TO , which jumped 10.0% and Yamana Gold Inc YRI.TO , which rose 7.8%.
* Hudson's Bay Co HBC.TO fell 1.7%, the most on the TSX. The second biggest decliner was Nexgen Energy Ltd NXE.TO , down 1.0%.
* The most heavily traded shares by volume were Prometic Life Sciences Inc PLI.TO , Fortuna Silver Mines Inc FVI.TO and Yamana Gold.
* The TSX posted 21 new 52-week highs and no new low.
* Across all Canadian issues there were 81 new 52-week highs and six new lows, with total volume of 58.45 million shares.