TSX glides near two-month high as major sectors rally
By John Tilak
TORONTO (Reuters) - Canada's main stock index jumped more than 1 percent to hit nearly a two-month high on Tuesday, fueled by gains in most major sectors and optimism following positive economic data from Europe.
British inflation fell twice as fast as expected last month, giving incoming Bank of England Governor Mark Carney more leeway for stimulus. Another report showed that Germany is on track for a solid recovery due to a pickup in demand for its products from abroad.
Investors also awaited minutes expected on Wednesday from the U.S. Federal Reserve's most recent policy-making meeting to look for clues about whether the central bank will continue its ongoing stimulus program. <FED/DIARY>
Stocks were supported by strength in resource groups, reflecting gains in the prices of some commodities on Monday, when the Canadian stock market was closed for the Victoria Day holiday.
The resources-heavy Toronto market, up for the third straight session, has climbed 2.5 percent for the year to play catch-up with the S&P 500 .SPX, which has recorded much steeper gains.
"The gap between the U.S. market and the Canadian market will narrow as the year goes on," said Bob Gorman, chief portfolio strategist at TD Waterhouse, in Toronto.
Gorman expects the Canadian index to end the year about 6 percent higher.
He sees a rebound in the resource sector because of low expectations built into share prices. Continued...