TSX climbs as U.S. data buoys mood
By John Tilak
TORONTO (Reuters) - Canada's main stock index advanced on Thursday, helped by gains in most major sectors, as U.S. economic data lifted investor sentiment and eased concerns about the recovery in the world's largest economy.
At the same time, the market cheered comments from a Federal Reserve official who said the U.S. central bank's asset purchases would be more aggressive than the timeline outlined last week if U.S. economic growth and the labor market turn out weaker than expected.
Further boosting the mood was data showing German unemployment dropped unexpectedly in June and that Britain did not suffer a double-dip recession early last year as previously thought.
The index's gains was limited by declines in telecoms stocks, which fell for the second straight day after reports that U.S. giant Verizon Communications Inc (VZ.N: Quote) is looking to enter the Canadian market.
On the data front, U.S. consumer spending rebounded in May and new applications for unemployment benefits fell last week, suggesting the U.S. economy remained on a moderate growth path.
"The data into the second quarter has continued to show a nice improvement in the U.S. economy," said Colin Cieszynski, senior market analyst at CMC Markets Canada.
"A solid economy that can stand on its feet does not need quantitative easing," he added. "If the economy improves to a point where that goes away, it's actually a good thing."
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 53.88 points, or 0.45 percent, at 12,005.78. Continued...