* TSX up 58.27 points at 11,575.45
* Energy, mining lead index higher (Adds prices, details, quotes)
By Claire Sibonney
TORONTO, June 9 (Reuters) - Toronto’s main stock index rallied on Wednesday as commodity prices got a boost following an unofficial report that China’s May exports blew past expectations.
Sources said China’s exports in the month rose about 50 percent from a year earlier, fueling a run to assets that would benefit from an economic rebound. The price of oil was up by $2 a barrel. [O/R] [ID:nTOE65805R]
The Toronto index’s energy sector shot up 1.3 percent with Suncor Energy SU.TO, the country’s largest oil company, rising 1.7 percent to C$32.49, and Canadian Natural Resources (CNQ.TO) gaining 1.7 percent to C$36.75.
“That certainly helped some of the commodity markets, it’s got a few of the commodities stocks moving here,” said Bruce Latimer, trader at Dundee Securities, adding that there was also better sentiment due to Tuesday’s equities rally.
The index’s mining sub-sector rose 2.3 percent as the price of copper bounced up on expectations of higher demand from China, the world’s largest consumer of industrial metals. [MET/L]
Teck Resources TCKb.TO, Canada’s largest base-metals producer, jumped 2.1 percent to C$33.42, while First Quantum Minerals (FM.TO) soared 4.3 percent to C$52.19.
With rises in commodity prices, the Canadian dollar also marched higher. [CAD/]
At 10:19 a.m. (1419 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 58.27 points, or 0.5 percent, at 11,575.45. Nine of its 10 main groups were higher.
U.S. Federal Reserve Chairman Ben Bernanke told the House of Representatives Budget Committee on Wednesday that the economic recovery appears to be on solid footing but warned it could take years before the job market recovers from damage sustained during the recession. [ID:nWAL9HE68B]
Investors will be looking out for the Fed’s Beige Book survey of economic activity, which was set to be released at 2 p.m. (1800 GMT) on Wednesday.
Latimer said he was wary about the direction the market could take by the end of the day, given the recent volatility and sell-offs in the last hour of trading.
“It just seems that the day traders and fast money traders are pretty content to go home flat at night,” he said.
“The market is just so volatile, a lot of people are more content to trade in the markets during the day rather than try to take an overnight stance on it.”
$1=$1.04 Canadian Reporting by Claire Sibonney; Editing by Peter Galloway