CANADA STOCKS-Jobs data helps TSX add to 3 days of gains

Fri Jul 9, 2010 10:55am EDT
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* TSX rises 50.52 points to 11,483.89

* Materials, financials lead index higher (Updates with details, commentary)

By Claire Sibonney)

TORONTO, July 9 (Reuters) - Toronto's main stock index edged higher on Friday morning, adding to three straight sessions of gains, after stunning domestic employment data boosted investor confidence and bank shares, while strong metal prices pushed up the materials sector.

Canada's economy created six times more jobs than forecast in June, a near-record gain that pressures the central bank to raise interest rates again this month, even as cracks in the U.S. recovery threaten to cool the country's scorching growth. [ID:nN09261751]

"Those good employment numbers have obviously reassured the market about growth," said Gavin Graham, global strategist at Excel Funds Management.

As well, gold prices rose back above $1,210 an ounce as a global stock market rally showed signs of running out of steam, while copper was up nearly 2 percent as demand prospects brightened, sending materials shares 2.1 percent higher. [GOL/] [MET/L]

Among the top gainers, Barrick Gold Corp ABX.TO was up 2.3 percent at C$45.42, while Teck Resources TCKb.TO rose 2.2 percent to C$35.20.

Financial stocks, which can be sensitive to interest rate expectations, gained 0.3 percent after a wobbly start, as the positive prospects for growth outweighed any negative implications of higher borrowing costs.   Continued...