CANADA STOCKS-TSX gains as investors shrug off U.S. shutdown
* TSX closes up 60.25 points, or 0.47 percent, at 12,847.44
* Banks and energy companies lead gains, miners weigh
By Alastair Sharp
TORONTO, Oct 1 (Reuters) - Canada's main stock index ended higher on Tuesday as investors largely shrugged off a partial shutdown of the U.S. government, buying into banks, insurers and energy companies while many of the index's biggest mining stocks fell.
Some of the world's biggest gold miners slumped in line with a sharp fall in the price of bullion despite the deflationary risk of the U.S. government reducing its activities and a looming battle over raising Washington's borrowing limits.
Investors are getting wise to Washington politics and do not expect the shutdown to last too long, said Keith Richards, portfolio manager at ValueTrend Wealth Management in Barrie, Ontario.
And if the shutdown were prolonged, it might encourage the U.S. Federal Reserve to maintain its stimulus program for a longer period, which would also boost stocks, he said.
"If there is a longer shutdown it would slow the economy and therefore reduce the (Fed) taper talk that's been the prevalent fear out there," Richards said, adding that a looming fight over raising Washington's borrowing authority was much more dangerous.
The TSX index ended up 60.25 points, or 0.47 percent, at 12,847.44, its biggest one-day gain since Sept. 18. It had opened in the red after hitting a two-week low on Monday. Continued...