CANADA STOCKS-TSX snaps 2 days of losses as Fed reassures

Wed Aug 12, 2009 4:44pm EDT
 
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* TSX up 30.40 points, or 0.29 percent, at 10,659.87

* Federal Reserve sees signs of a more stable economy

* Energy sector, up 1 percent, as oil climbs above $70 (Adds closing numbers, details, quote)

By Jennifer Kwan

TORONTO, Aug 12 (Reuters) - Toronto's main stock index finished higher on Wednesday, following two days of losses, after the U.S. Federal Reserve said it saw some signs of a more stable economy after 20 months of recession.

The Fed also kept its benchmark short-term interest rate steady near zero and said it would likely stay there for an extended period. [ID:nN1272730]

The big energy and financial sectors, up 1 percent and 0.4 percent, respectively, were the major drivers behind the index's move higher, while mining companies also showed some strength.

Oil prices CLc1 settled higher above $70 a barrel on optimism about the economy, which offset concerns about rising inventories. [ID:nSP527509]

"Crude oil has gotten a bit of a bounce after the Fed comments," said Elvis Picardo, analyst and strategist at Global Securities in Vancouver.   Continued...