TSX hits one-week high on robust China data

Wed Apr 10, 2013 5:06pm EDT
 
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By John Tilak

TORONTO (Reuters) - Canada's main stock index extended its gains to a third straight day on Wednesday, hitting a one-week high, as positive trade data from China buoyed hopes for a global economic recovery and lifted financial and energy shares.

The gains offset weakness in Barrick Gold Corp (ABX.TO: Quote) and other gold shares. The world's biggest gold mining firm was hit by a court in Chile temporarily suspending construction at a huge mine there. <ID: nL2N0CX0II>

The price of bullion tumbled after minutes of a Federal Reserve meeting showed some policymakers expected to slow the pace of bond purchases and discontinue them by year end. <GOL/>

Data showed that Chinese imports of key commodities rebounded in March as hopes of a strengthening economy encouraged end-users to ramp up production and cautiously replenish stocks.

Those figures followed upbeat Chinese inflation numbers on Tuesday and helped the resource-heavy Toronto index extend its recovery from a five-day losing streak last week, when it lost 3.3 percent.

"There is a sense of optimism that maybe things are turning around, especially on the resources side. That is helping the mood out there," said Serge Pepin, vice president of investment strategy at BMO Asset Management Canada.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 50.86 points, or 0.41 percent, at 12,534.91, after reaching 12,555.68, its highest point in a week.

On Tuesday, the index recorded its biggest one-day percentage jump in more than four months.   Continued...

 
Bay Street signs are seen in the heart of the financial district in Toronto, August 17, 2009. REUTERS/Mark Blinch