CANADA STOCKS-TSX jumps 2 pct as euro news helps spark rally

Tue Jun 15, 2010 4:46pm EDT
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* TSX closes up 240.20 points at 11,907.54

* Financials lead, all 10 sectors rise (Updates to close)

By Claire Sibonney and Jennifer Kwan

TORONTO, June 15 (Reuters) - Toronto's main stock index rose sharply on Tuesday after healthy demand at several euro zone debt auctions and a subsequent rally in commodity markets whetted investor appetite for riskier assets.

The index's financial sector shot up 2.3 percent as Royal Bank of Canada (RY.TO: Quote), the country's largest lender, gained 1.8 percent to C$54.71, and Canadian Imperial Bank of Commerce (CM.TO: Quote) soared 3.2 percent to C$75.00.

"The financials on the TSX are actually leading the way. That's consistent pretty much across the globe," said Jean-Francois Dion, vice president and portfolio advisor of Canadian equities at RBC Dominion Securities.

"There seem to be some signs of improvement on the European credit side of things that's causing a little bit of optimism out there."

The gain for CIBC also came a day after Canada's No. 5 bank agreed to buy Citigroup's C$2.1 billion Canadian MasterCard business, becoming a dual credit card issuer with its existing Visa business. [ID:nN14238942]

Spain, Belgium and Ireland all sold government debt at auctions that attracted solid demand and lifted some of the gloom over Europe's debt crisis. That helped the euro rally against the dollar and pushed some commodities higher.   Continued...