CANADA STOCKS-TSX jumps more than 1 pct as gold, oil prices rise

Tue Oct 5, 2010 11:06am EDT
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   * TSX up 123.27 points, or 1 percent, at 12,446.21
 * All 10 of the 10 main sectors are higher
 * Gold, energy producers climb with bullion, oil prices
 * Commodity prices climb after Bank of Japan rate cut
 * Market at highest level since Sept, 2008
 (Adds details, quote)
 By Solarina Ho
 TORONTO, Oct 5 (Reuters) - Toronto's resource-heavy stock
index jumped more than 1 percent on Tuesday as commodity prices
climbed after Japan lowered interest rates, a move that raised
hopes other central banks will take further steps to spur
 U.S. data which showed the pace of growth in the services
sector beat forecasts also helped Canadian stocks rise to their
highest level in more than two years. [ID:nN05186153]
 The TSX's materials sector, home to miners, was up 1.8
percent, with gold miners like Agnico Eagle (AEM.TO: Quote) up 2.6
percent at C$73.86, Iamgold Corp (IMG.TO: Quote) rising 3 percent to
C$18.19, and Barrick Gold (ABX.TO: Quote) climbing 2.4 percent to
 Gold prices rallied above $1,330 an ounce in Europe,
hitting record highs as the U.S. dollar weakened against the
euro. Gold is seen by many as a safe haven and tends to move in
opposition to the greenback. [GOL/] [FRX]
 "Lots of speculation whether another phase of quantitative
easing is coming out of the U.S. or Europe -- mostly out of
U.S.," said Francis Campeau, a broker at MF Global Canada.
 "It's basically sending ... commodities much higher, with
gold up more than 1 percent into record territory. Also similar
price action on copper."
 Other miners that found support from higher metal prices
include Ivanhoe Mines (IVN.TO: Quote), up 3.3 percent at C$24.60.
 The energy group, another key sector on the index, was up
0.9 percent, strengthened by Canadian Natural Resources
(CNQ.TO: Quote) which rose 1.9 percent to C$37.06 and Nexen Inc
NXY.TO up 1.9 percent at C$21.18.
 U.S. crude futures for November climbed as high as $82.58.
Oil is priced in U.S. dollars on international markets and
often moves inversely to the currency. [O/R]
 At 10:37 a.m. (1437 GMT) the S&P/TSX composite index
.GSPTSE was up 123.27 points, or 1 percent, at 12,446.21.
 In company news, Potash Corp (POT.TO: Quote), fending off a $39
billion hostile takeover bid from BHP Billiton, was down 1.4
percent at C$145.64. It slammed a report commissioned by
Saskatchewan that favors BHP's bid for the fertilizer producer
over a potential bid from a Chinese entity.
 Pharmacy retailer Jean Coutu Group (PJCa.TO: Quote) rose 1.2
percent to C$8.99, buoyed by a stronger second quarter profit.
 (Editing by Jeffrey Hodgson)