CANADA STOCKS-TSX reaches 2-year high on golds, financials

Wed Oct 13, 2010 4:56pm EDT
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   * TSX rises 0.78 percent to 12,673.31
 * Resources rally as gold hits record, U.S. dollar sags
 * Strong start to U.S. earnings season buoys sentiment
 (Adds details)
 TORONTO, Oct 13 (Reuters) - Toronto's main stock index
closed sharply higher on Wednesday, led by commodity issues
after the U.S. Federal Reserve signaled it may pump extra
stimulus into the U.S. economy.
 Underpinned by a sagging U.S. currency, bullion prices set
a record high, while the price of oil held close to $83 a
barrel. Those bullish prices helped send the index's materials
group up 1.76 percent and the energy sector 0.9 percent higher.
 Eight of the index's 10 main groups finished higher.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed 97.67 points, or 0.78 percent, higher at
12,673.31, paring gains from the highest level in more than two
years at 12,710.19 reached earlier in the session.
 "All that glitters is gold. The index is making two-year
highs mostly bolstered by golds. Financials are also catching a
bid," said Francis Campeau, broker at MF Global Canada in
Montreal. "
 Key advancers included Barrick Gold ABX.TO, up 0.9
percent at C$49.41, and Goldcorp G.TO, up 2.25 percent at
C$45.45. Teck Resources TCKb.TO rose 2.89 percent to C$45.99,
while Suncor Energy SU.TO climbed 0.46 percent to C$35.31.
 Financials were up 0.7 percent on the back of a higher
profit at U.S. bank JPMorgan Chase & Co, with Royal Bank of
Canada RY.TO adding 0.55 percent to C$55.29, while Bank of
Montreal BMO.TO rose 0.62 percent to C$60.21.
 Stronger-than-expected U.S. corporate results from JPMorgan
and Intel lifted sentiment. A solid start to U.S. earnings has
given hope to investors that the majority of quarterly results
in the United States and Canada will top analysts'
 "The market is quite optimistic that the upcoming earnings
season will be a good one," said Elvis Picardo, analyst and
strategist at Global Securities in Vancouver.
 Canada's earnings season starts in earnest next week, with
several energy companies kicking it off, starting with EnCana
Corp. [ID:nN07267143]
 Expectations grew for further quantitative easing by the
Fed after minutes from the U.S. central bank's latest meeting
seemed to confirm that it would soon inject cash into the
market to support the flagging economy.
 ($1=$1.00 Canadian)
 (Reporting by Ka Yan Ng; editing by Peter Galloway)