CANADA STOCKS-TSX jumps on renewed Europe hope, rising gold

Tue Aug 21, 2012 10:38am EDT
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* TSX up 102.96 points, or 0.85 percent, at 12,178.99
    * Miners, banks and energy companies lead broad rise
    * Optimism on Europe helps sentiment

    By Alastair Sharp
    TORONTO, Aug 21 (Reuters) - Canada's benchmark stock index
jumped higher on Tuesday as optimism returned to the fore with
prospects for European bond-buying and resurgent gold prices
boosting mining and energy stocks.  
    The price of gold jumped to its highest level since early
June, and gold miners were among the top-weighted upward
movers on the Toronto exchange, with Barrick Gold Corp 
rising 2.8 percent to C$37 and Goldcorp Inc up 2.3
percent to C$38.77.
    Smaller gold miners jumped even more, with Eldorado Gold
Corp up 5.5 percent to $12.41 and New Gold Inc 
up 5.3 percent to C$11.05.
    The broad gains in Canadian stocks followed European
listings higher as investors bet on political and monetary moves
to backstop the region's most debt-ridden countries.
     European shares hit 13-month highs and the euro climbed on
hopes that meetings on Greece's future this week and new crisis
plans being drawn up by the European Central Bank will soothe
the euro zone debt crisis. 
    Philip Petursson, director of the portfolio advisory group
at Manulife Asset Management, said a string of decent corporate
earnings this month and attractive valuations had given the
exchange a positive tilt which could only be aided by European
    "The glass is half full and if things in Europe seem to be
leaning a little bit more positively that's just further
upside," he said.
    By 10:10 a.m. (1410 GMT) the Toronto Stock Exchange's
S&P/TSX composite index was up 102.96 points, or 0.85
percent, at 12,178.99.