CANADA STOCKS-TSX rallies 2 percent as commodities rebound

TORONTO, June 4 (Reuters) - Toronto's main stock index rose 2 percent on Thursday afternoon as energy and materials issues rose in tandem with oil and gold prices.

Comments by the Bank of Canada noting recent improvements in financial conditions and commodity prices, as well as some recovery in consumer and business confidence, also helped market sentiment.

But the central bank warned that a sustained rally in the Canadian dollar could threaten all that. [ID:nN0479627]

The S&P/TSX composite index .GSPTSE was up 205.48 points, or 2.0 percent, at 10,495.60 (Reporting by Jennifer Kwan; editing by Peter Galloway)