CANADA STOCKS-TSX rises as resource rally signals confidence

Mon Jun 14, 2010 10:37am EDT
 
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*TSX up 66.04 points, or 0.6 percent at 11,732.96

*Energy, base-metals, banks lead index higher (Updates with prices, adds details, quotes)

By Claire Sibonney

TORONTO, June 14 (Reuters) - Toronto's main stock index rose on Monday morning as gains in commodity prices signaled growing investor confidence in the global economic recovery.

Oil prices rallied above $75 a barrel as the euro and global equity markets got a boost from data that showed euro zone industrial output in April surged year-on-year more than in any month in almost two decades. [ID:nLDE65D0YC] [O/R]

The energy sector shot up 1.4 percent. Suncor Energy SU.TO rose 1.3 percent to C$34.20, and EnCana Corp ECA.TO gained almost 1 percent to C$34.97.

Also lifting risk sentiment, a top U.S. Federal Reserve official said the strong global economic recovery is unlikely to be thrown off course by European debt woes or, improbably, by the bursting of an asset bubble in China. [ID:nTOE65D04O]

"We've got just a little bit of buyers' appetite out here," said Bruce Latimer, a trader at Dundee Securities.

"You've got the Canadian dollar a little stronger, you've got some of the commodities doing better, I think people are just looking at some names they feel have been beaten up over the last little while." [CAD/]   Continued...