* TSX up 0.3% after two days of losses

* Financials lead gains

* Superior Plus Corp falls on Raymond James downgrade

Jan 4 (Reuters) -

Canada's main stock index rose on Thursday on a boost from financial shares, while investors weighed prospects of early rate cuts after data pointing to resilience in the U.S. labor market.

At 10:07 a.m. ET (1507 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 69.05 points, or 0.33%, at 20,887.63, following two straight days of losses.

Canada's heavyweight financial sector rose 0.7%, led by CI Financial Corp, which was up 1.4%.

The technology index rose 0.4%, rebounding from a three-day losing streak, while the materials sector , which includes precious and base metals miners, shed 0.3%.

Market sentiment turned sour at the start of 2024 as investors became cautious about the timing of rate cuts from the U.S. Federal Reserve and other major central banks.

However, as economic growth slows, some analysts remain optimistic about the likelihood of lower rates this year.

"We've reached peak interest rates," said Allan Small, senior Investment advisor at Allan Small Financial Group, adding that they will come down in 2024.

"That should be a positive for the stock market for the year on both sides of the border, Canada and the U.S."

Data

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Greater Toronto Area home sales fell to an over two-decade low last year due to higher borrowing costs.

South of the border, a fresh batch of U.S. employment data, including a report showing a fall in weekly jobless claims, pointed to fairly tight labor market conditions.

Wall Street's main indexes were mixed in early trade with the tech-heavy Nasdaq lagging peers.

Among individual stocks, Superior Plus fell 2.8% after Raymond James downgraded the Canadian propane distributor to "market perform" from "outperform".

(Reporting by Amruta Khandekar and Purvi Agarwal in Bengaluru; Editing by Tasim Zahid)