CANADA STOCKS-TSX bounces back up after Bernanke blip
* TSX up 92.68 points, or 0.78 percent, at 11,979.33 * Bernanke speech causes volatility * Index opens higher, falls into red, bounces back * Gold miners, banks lead ascent By Alastair Sharp TORONTO, Aug 31 (Reuters) - Canadian equities resumed an upward trajectory on Friday morning after dipping sharply immediately after a speech by U.S. Federal Reserve Chairman Ben Bernanke that did not explicitly point to imminent monetary easing. "Markets are very easily moved up and down," said Sal Masionis, a stockbroker at Brant Securities in Toronto. "You've really got to parse every little thing he says." In the speech at a meeting of central bankers in Jackson Hole, Wyoming, Bernanke said progress in bringing down U.S. unemployment was too slow and the central bank would act as needed to strengthen the economic recovery. As the speech was digested, its message lent support. "The speech comes across as a staunch defence of the effectiveness of unconventional monetary policy," Paul Dales, a senior economist at Capital Economics, wrote in a note. He said the Fed would likely announce a third round of asset purchases at a mid-September meeting. Such a move is seen as a positive in Canada, which watches its southern neighbor and main trading partner closely for signs of economic recovery. "The U.S. continues to be the only safe haven in this weakening global economy. The data keeps improving and showing strong signals," said Barry Schwartz, vice president and portfolio manager at Baskin Financial Services. By 11:03 a.m. (1503 GMT) the Toronto Stock Exchange's S&P/TSX composite index was up 92.68 points, or 0.78 percent, at 11,979.33. It had fallen as low as 11,872.26 soon after Bernanke's speech. The index had dipped in every session so far this week and closed on Thursday at its lowest level in two weeks. Friday's rise was led by gold miners Goldcorp Inc and Barrick Gold Corp, which each gained 2.7 percent, and by Royal Bank of Canada, which rose 0.9 percent after surprising investors with a dividend increase and solid profit growth on Thursday. Domestically, growth in the Canadian economy positively surprised investors at an annualized 1.8 percent in the second quarter, as strong business investment overshadowed a small fiscal drag, data released on Friday showed.
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