CANADA STOCKS-TSX rises on U.S. data, IMF chief's remarks

Thu Oct 11, 2012 10:55am EDT
 
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* TSX up 74.33 points, or 0.6 pct, at 12,286.75
    * All 10 sectors stronger, led by commodities

    By Claire Sibonney
    TORONTO, Oct 11 (Reuters) - Canada's main stock index rose
on Thursday after encouraging U.S. employment data and comments
from the IMF that were seen were seen supporting stability in
the euro zone.
    All 10 sectors were stronger, led by resource-related shares
as commodity prices rose. 
    Among the top advancers, Potash Corp rose 1.7
percent to C$41.22, Canadian Natural Resources climbed
1 percent to C$30.09 and Teck Resources added 1.7
percent to C$30.41.
    Boosting sentiment, data showed U.S. initial jobless claims
fell to the lowest level in more than four and a half
years. 
    The report follows last week's government report that showed
a surprising drop in September's unemployment rate to 7.8
percent.
    "There are definitely signs of life south of the border,
whether it's housing prices, or industrial production or
earnings for that matter," said Gavin Graham, president at
Graham Investment Strategy, adding that the latest jobless
claims report was further helping confidence.
    At 10:43 a.m. (1243 GMT), the Toronto Stock Exchange's
S&P/TSX composite index was up 74.33 points, or 0.6
percent, at 12,286.75.
    Meanwhile, markets also reacted positively to remarks from
Christine Lagarde, the IMF's managing director, that indebted
euro zone economies should have more time to cut budget
deficits. Lagarde's comments helped to offset news of a
downgrade of Spain's credit rating. 
    "I think the downgrade of Spain was already priced in," said
Graham. 
    "The fact is that there's no way Spain is investment grade
at present, so it's a question of what is the political will on
the part of the European authorities to continue buying Spain,
and for that matter Italian, bonds."