CANADA STOCKS-TSX rises on Draghi comments, U.S. data

Thu Oct 4, 2012 10:39am EDT
 
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* TSX up 77.03 points, or 0.6 pct, at 12,436.50
    * All 10 sectors higher

    By Claire Sibonney
    TORONTO, Oct 4 (Reuters) - Canada's main stock index climbed
on Thursday after U.S. data pointed to a slightly improving
labor market and following encouraging comments by European
Central Bank President Mario Draghi on tools to tackle the
region's debt crisis.
    Commodity prices rallied broadly, sending resource shares
higher after a poor performance in the previous session. 
  
    Enbridge Inc rose 2 percent to C$40.18, Suncor
Energy climbed 1.3 percent to C$33.18 and Goldcorp Inc
 added 1 percent to C$45.17.
    Lifting sentiment, Draghi said the ECB is ready to buy the
bonds of euro zone member countries that ask for it, leaving the
door open to a widely expected bailout of Spain. 
    "Draghi has shown that he's someone you don't want to mess
with and the market needs to understand that he's going to do
whatever it takes to ensure that the euro survives," said Barry
Schwartz vice president and portfolio manager at Baskin
Financial Services.
    The euro zone is also considering aiding Spain by providing
insurance for investors who buy government bonds in a move
designed to maintain Spanish access to capital markets and
minimize the cost to European taxpayers, European sources told
Reuters. 
    At 10:31 a.m. (1431 GMT), the Toronto Stock Exchange's
S&P/TSX composite index was up 77.03 points, or 0.62
percent, to 12,436.50. All of the 10 sectors were in positive
territory, inducing financials, up 0.6 percent.
    Also supporting equities, data showed that fewer than
expected Americans filed new claims for unemployment benefits
last week, suggesting a mild improvement in the labor market.
 
    "The data points that we're seeing out of the U.S. pretty
much confirm that any chance of a recession happening is
completely preposterous," said Schwartz.
    "Demand for autos, the increase in housing prices, the
jobless claims, put all these things together and you get a
scenario where you could have decent economic growth but I think
the missing factor is you need confidence in the system."