May 12, 2010 / 9:21 PM / 7 years ago

CANADA STOCKS-TSX shoots higher as euro zone fears ease

3 Min Read

* TSX up 195.36 points, or 1.63 percent, at 12,195.97

* Spain's tough austerity moves boost world stocks

* All 10 main sectors higher (Adds details, quote)

By Jennifer Kwan

TORONTO, May 12 (Reuters) - Toronto's main stock index rose for a third straight session on Wednesday as concerns eased about euro zone debt problems and their impact on economic recovery.

The index's big energy, materials and financial groups led the charge higher after Spain outlined measures to cut its deficit, which quieted fears that the Greek debt crisis could spread to other countries in Europe. [MKTS/GLOB]

Suncor Energy (SU.TO) rose 3 percent to C$32.91, First Quantum Minerals (FM.TO) rallied 5 percent to C$73.60, and Royal Bank of Canada (RY.TO) was up 1.8 percent at C$61.13.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE finished the session up 195.36 points, or 1.63 percent, at 12,195.97, with all its 10 main groups higher. During the day, the index touched 12,204.98, its highest level in more than a week.

Last week it dived 4.2 percent on euro-zone contagion fears.

"After duck and cover last week people are coming back on the bandwagon," said Francis Campeau, broker at MF Global Canada, in Montreal.

Investor interest was also seen in the Canadian dollar's performance, with the currency up for a fourth straight session on Wednesday against its U.S. counterpart, helped by rallying equities and the easing euro zone fears. [CAD/]

"It comes down to the fundamentals itself. It's the old stronger financial network ... better employment numbers, so Canada is on the international radar," Campeau said.

Investor anxiety about Europe's debt problems were not totally erased, however. Safe-haven U.S. gold futures hit a record high above $1,240 an ounce on Wednesday. [GOL/]

In Toronto, shares of Kinross Gold (K.TO) climbed 2.6 percent to C$19.66.

Canadian banks were on the rise after Barclays boosted its rating on the heavyweight sector to positive from neutral. [ID:nWNAB9504]

Bank of Montreal (BMO.TO) rose 2.5 percent to C$61.85, while Toronto-Dominion Bank (TD.TO) was up 1.9 percent at C$74.99. Bank of Nova Scotia (BNS.TO) rose 1.7 percent to C$52.60, and CIBC (CM.TO) climbed 2.3 percent to C$74.14.

Canada's energy sector rose 2 percent, even as oil prices fell, partly because of rising inventories. [O/R] EnCana Corp was up 2.7 percent at C$33.17, while Canadian Natural Resources (CNQ.TO) climbed 0.9 percent to C$73.80.

The blue chip S&P/TSX 60 index .TSE60 closed 11.84 points higher, or 1.68 percent, at 716.83.

$1=$1.02 Canadian Reporting by Jennifer Kwan; editing by Peter Galloway

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