CANADA STOCKS-TSX jumps as investors cheer oil data; Fed in spotlight
(Updates after Fed news, adds strategist comment, updates prices)
* TSX ends up 224.44 points, or 1.59 percent, at 14,301.80
* Banks, rails and oil stocks lead the rally
By Alastair Sharp
TORONTO, July 29 (Reuters) - Canada's main stock index jumped on Wednesday, helped by gains in banks, railways and oil companies as crude prices bounced from near six-month lows and the Federal Reserve left the door open for a September interest rate hike.
The U.S. central bank said the economy and job market of Canada's main trading partner continues to strengthen, which was seen as a baby step toward higher rates.
"The Fed tone was encouraging, that's a big thing, crude oil is up, (and) you're seeing bargain hunting in some of the beaten-down names," said Elvis Picardo, a strategist at Global Securities in Vancouver. "It's a bunch of positive factors."
Oil prices settled higher, recovering from multi-month lows, after U.S. government data showed a surprisingly large crude stockpile draw that signaled the market may have been wrong in predicting slumping demand for energy.
The energy, financial and industrial sectors all clocked gains of more than 2 percent. Those groups featured among laggards during a seven-day slump the index snapped on Tuesday. Continued...