CANADA STOCKS-TSX rebounds as concern over EU debt crisis eases

Wed Sep 7, 2011 11:11am EDT
 
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 * TSX up 60.50 points, or 0.48 percent at 12,579.04
 * Energy, financials lead gains
 * Nine of 10 sectors higher, golds drag
 By Trish Nixon
 TORONTO, Sept 7 (Reuters) - Toronto's main stock market
index rose on Wednesday after three days of losses, on hopes
the European debt crisis might ease after Germany's top court
smoothed the way for Berlin's participation in bailout
packages.
 European stocks bounced back from a two-year low after the
court rejected lawsuits aimed at blocking the country's
participation in aid to Greece and other nations, giving
temporary relief to investors after this week's sharp sell-off
in riskier assets. [MKTS/GLOB]
 "The global risk trade is back on track," said Francis
Campeau, broker at MF Global Canada in Montreal, noting that
gold was being sold off, while energy, base metals and
financials were climbing. "Yesterdays winners are today's
losers and vice-versa."
 Beaten-down energy shares rallied to lead the index's
gains, adding 1.7 percent collectively as oil was lifted by
supply issues on both sides of the Atlantic and as the news out
of Europe boosted fragile investor confidence. [O/R]
 Suncor Energy SU.TO was up 2.3 percent at C$29.94, and
Canadian Natural Resources CNQ.TO jumped 1.8 percent to
C$35.17.
 Financial issues also recovered some of their recent
losses, rising 1 percent. Toronto-Dominion Bank TD.TO was up
1.1 percent at C$77.42, while Royal Bank of Canada RY.TO
added 1.04 percent to C$48.71.
 At 10:35 a.m (1435 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was up 60.50 points, or 0.48
percent at 12,579.04. Nine of the 10 main groups were higher.
 Gold stocks, which have supported the index in recent
downturns, tracked the price of the safe-haven metal lower,
limiting gains and causing the TSX to underperform U.S.
markets. [GOL/]
 "Same way we tend to outperform on the way down, we tend to
lag on the way up," said Campeau.
 The gold-mining sub-group lost 2.7 percent, with Barrick
Gold ABX.TO down 2.4 percent to C$51.90, and Goldcorp G.TO
off 2.2 percent at C$52.92.
 (Editing by Jeffrey Hodgson)