CANADA STOCKS-TSX jumps on commodities, risk rally

Tue Jul 6, 2010 10:46am EDT
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*TSX up 144.54 points at 11,237.04

*Nine out of 10 sectors higher (Updates with details, commentary)

By Claire Sibonney

TORONTO, July 6 (Reuters) - Toronto's main stock index shot higher on Tuesday morning, bouncing back from its lowest close in eight months, helped by commodity prices, which were swept up in a global rally of riskier assets.

The index was firing on two of its three most powerful cylinders with its energy sector up 2.4 percent and the financial group up 1.7 percent.

On the leaderboard, Suncor Energy (SU.TO: Quote) rose 2.8 percent to C$31.62, Toronto-Dominion Bank (TD.TO: Quote) added 2.4 percent to C$69.56, and Teck Resources TCKb.TO soared 6.5 percent to C$32.24.

Oil prices rose above $73 a barrel, rebounding after several days of declines. Copper prices firmed to a one-week high, pushing base-metals shares 5.2 percent higher. [O/R] [MET/L]

Apart from scooping up bargains on recently sold-off stocks, investors were relieved by signs of strength in Europe's banking system and by a rally in overseas markets.

"The news flow out of Europe has been better ... that's providing the market with some direction," said Barry Schwartz, vice-president and portfolio manager at Baskin Financial Services.   Continued...