TSX has best one-day jump of 2012, near two-month high

Tue Jul 3, 2012 5:16pm EDT
 
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By Jon Cook

TORONTO (Reuters) - Canadian stocks enjoyed their biggest single-day gain of 2012 on Tuesday and reached a near two-month high, as mining and energy shares soared on hopes major central banks will ease policy to revive a world economy hit hard by Europe's debt crisis.

A raft of weak economic data has raised expectations that the European Central Bank will cut interest rates to a record low on Thursday, a move that could drive stock markets higher and further lift commodities like oil and copper.

"It was a brutal month last month for a lot of people, so you usually get some money coming back to work at the beginning of the month," said Sid Mokhtari, market technician and director, institutional equity research, CIBC World Markets.

All of the Toronto market's 10 main sectors finished in positive territory.

Leading the way was the heavily-weighted materials group, home to mining stocks, which climbed 4.1 percent as copper hit a seven-week high and gold rallied.

Influential gainers included Goldcorp Inc (G.TO: Quote), which rose 4.1 percent to C$39.90, Barrick Gold (ABX.TO: Quote), up 3 percent at C$39.50, Potash Corp (POT.TO: Quote), up 2.9 percent to C$45.77 and Teck Resources TCKb.TO, which climbed 3.9 percent to C$32.77.

The energy sub-index jumped 3.3 percent, tracking a U.S. crude price which rose more than 4 percent as mounting tension over Iran's nuclear program sparked concerns about supply threats.

Suncor Energy (SU.TO: Quote) shares rose 4.3 percent at C$30.71, playing the biggest role of any company in leading the market higher. Canadian Natural Resources (CNQ.TO: Quote) was up 4 percent at C$28.41 and Cenovus Energy Inc (CVE.TO: Quote) jumped 5 percent to C$33.97.   Continued...

 
An electronic board displays the midday TSX index in Toronto February 16, 2011. REUTERS/Mark Blinch