CANADA STOCKS-TSX rallies on robust U.S. jobs data

Fri Aug 3, 2012 11:01am EDT
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* TSX up 146.93 pts, or 1.3 pct, at 11,653.43
    * Index on track for biggest one-day gain in a month
    * Energy, financial shares lead gains
    * Strong U.S. jobs report boosts risk assets

    By Jon Cook
    TORONTO, Aug 3 (Reuters) - Canada's main stock index was
headed for its largest one-day gain in a month on Friday as
financial and resource shares were boosted after the U.S.
economy added more jobs than expected in July.
    U.S. non-farm payrolls rose 163,000 last month, the Labor
Department said, beating economists expectations for a 100,000
gain and offering hope of improvement in the world's largest
    The jobless rate, however, inched up to 8.3 percent from 8.2
percent in June.
    "It's a bullish report and it furthers the Fed's case that
they remain in the back seat waiting to see if there's some kind
of further deterioration," said Michael A. Gayed, CFA is Chief
Investment Strategist at Pension Partners, LLC. "If you look at
(U.S.) bond yields rising, it's coinciding with commodities."
    All of Canada's 10 main sectors were higher, led by the
powerful energy complex, which rose more than 2 percent as oil
prices jumped. 
    Leading the gains was Suncor Energy, up 3 percent at
C$31.46. Canadian Natural Resources jumped 3.9 percent
to C$27.80 and Cenovus Energy was up 3 percent to
    Canadian financials were also stronger, rising 1.2 percent
on the prospect the U.S. economy was stabilizing and possibly
shaking off its doldrums.
    The biggest mover was Royal Bank of Canada, which
climbed 1.5 percent to C$51.65, while Toronto-Dominion Bank
 was up 1.2 percent at C$78.92 and top insurer Manulife
Financial Corp jumped 3.5 percent to C$10.72.
    At 10:45 a.m. EDT (1445 GMT), the Toronto Stock Exchange's
S&P/TSX composite index was up 146.93 points, or 1.3
percent, at 11,653.43. The index was on track for its biggest
single-day percentage gain since July 3 when it spiked 2.2
    Gayed noted that Friday's move in equities was equally
driven by Thursday's comments from European Central Bank
President Mario Draghi, who provided no further stimulus, but
reinforced that the bank would act to prevent a collapse in the
    "The ECB did exactly what they needed to do, which was to
remind the market that they will prevent an event," he added.
"What has held money back from taking risk is the fear of a 2008
repeat. If you prevent the event, you rally on."
    The heavily weighted materials group, which includes miners,
was up 1 percent as copper rebounded after hitting a six-week
low on Thursday when the ECB held interest rates and announced
no new stimulus plans. 
    The most influential gainers included Ivanhoe Mines Ltd
, which jumped 5.7 percent to C$8.49 after China-owned
miner Chalco said it will extend its offer for a
majority stake in Mongolia-focused coal miner SouthGobi
Resources Ltd. Ivanhoe is South Gobi's majority
    Diversified miner Tech Resources rose 1 percent to
C$27.24 and Barrick Gold shares edged up 0.7 percent to