June 10, 2010 / 2:56 PM / 7 years ago

CANADA STOCKS-TSX rallies on upbeat data; market still wary

3 Min Read

* TSX up 94.37 points, or 0.8 percent, at 11,545.37

* Energy, materials, financials lead rise (Adds details, prices, quotes)

By Claire Sibonney

TORONTO, June 10 (Reuters) - Toronto's main stock index opened higher on Thursday, led by the heavyweight energy, materials and financials sectors, after China reported a surge in exports, lifting the outlook for demand and global growth.

The price of oil rose more than $1 on the Chinese data, with a drop in U.S. jobless claims and greenback weakness against the euro also helping to lift energy stocks 1.5 percent. [O/R] [ID:nTOE65901X]

Suncor Energy Inc (SU.TO) rose 1.6 percent to C$33.02, while Canadian Natural Resources (CNQ.TO) climbed 2.6 percent to C$36.67.

Recently lagging financials gained 0.8 percent as Royal Bank of Canada (RY.TO) added 1.3 percent to C$52.68 and Bank of Nova Scotia (BNS.TO) rose 1.3 percent to C$49.33.

"The question is not why is the market up, the question is how long is it going to last," said Fred Ketchen, director of equity trading at ScotiaMcLeod, pointing to the latest trend of hard selloffs near the end of the day.

"This information out of China ... it certainly lifts the demand outlook and I think that's important for economic growth," Ketchen said.

The news also firmed copper prices, which pushed the TSX's base-metals subsector up 3.5 percent. First Quantum Minerals (FM.TO) shot up almost 4 percent to C$53.40 while Teck Resources TCKb.TO jumped 4.5 percent to C$33.91. [MET/L]

Fertilizer producer also helped lift the broader materials sector, with Potash Corp (POT.TO) ahead 2.7 percent at C$102.49 and Agrium (AGU.TO) up 2.9 percent at C$54.60.

At 10:29 a.m. (1429 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 94.37 points, or 0.8 percent, at 11,545.37. All of the 10 main groups were higher.

On the domestic data front, new home prices rose for a 10th consecutive month in April, climbing 0.3 percent from March, but the country's trade surplus for the month was smaller than expected at C$175 million ($170 million). [ID:nN10209949]

"The way this market is behaving it can change on a dime, and we may see something later on in the day that doesn't look anything like what we're seeing just after the opening," said Ketchen.

"We need to find some staying power ... We need to see some consistency in the information, and so far that hasn't been the case."

U.S. data was also mixed as unemployment figures fell less than expected, while the trade deficit widened slightly in April, pointing to a moderate economic recovery.[ID:n09208728] (Reporting by Claire Sibonney; editing by Rob Wilson)

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