CANADA STOCKS-TSX jumps 2 pct on Europe news, S&P rally

Tue Jun 15, 2010 5:29pm EDT
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* TSX closes up 240.20 points at 11,907.54

* Financials lead, all 10 sectors rise

(Adds details, quote)

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 push higher was also motivated by the S&P 500 breaking above its 200-day moving average, a level it has struggled to breach for the last month and that signals bullish momentum. [.N]

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 adviser 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."   Continued...