Updates at market close

By Fergal Smith

Jan 29 (Reuters) - Canada's main stock index rose to a seven-week high on Wednesday as the Federal Reserve pointed to robust U.S. economic activity and after the Bank of Canada cut interest rates to help the domestic economy cope with expected U.S. trade tariffs.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 0.2% at 25,473.30, its highest closing level since December 11.

The Fed held interest rates steady and gave little insight into when further reductions in borrowing costs may take place in an economy where inflation remains above target, growth continues, and the unemployment rate is low.

"There is a bit of a reflationary buoyancy in the market from the language of the Fed," said Sid Mokhtari, chief market technician for CIBC Capital Markets.

"I wouldn't be surprised the yield curve in both the U.S. and Canada to continue to steepen and that should naturally buoy your financials and the pro-cyclical area of the market."

Cyclical stocks, such as financials, industrials and resource companies that tend to be sensitive to the performance of the economy, account for nearly 80% of the TSX's weighting.

The energy group rose 1.2% even as the price of oil CLc1 settled 1.6% lower at $72.62 a barrel. Uranium producer NexGen Energy Ltd NXE.TO was up 6.8%.

The materials group, which includes fertilizer companies and metal mining shares, added 0.9% as copper prices rose.

The Bank of Canada cut its key policy rate by 25 basis points to 3%, lowered its growth forecast and warned Canadians that a tariff war triggered by the U.S. could cause major economic damage.

"As we work through all of these challenges with the U.S. and political uncertainty, the Bank of Canada's in there trying to support the economy as they can," said Colin Cieszynski, chief market strategist at SIA Wealth Management.

(Reporting by Fergal Smith in Toronto and Ragini Mathur in Bengaluru; Editing by Sahal Muhammed and Alistair Bell)

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