CANADA STOCKS-TSX rallies on euro hopes, talk of Fed stimulus

Fri Oct 21, 2011 10:43am EDT
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   * TSX rises 154.66 points, or 1.3 pct, at 11,984.99
 * All 10 main sectors stronger, led by commodities
 * European leaders to hold crisis summit on Sunday
 * Fed officials argue for more mortgage bond purchases
 (Updates with details, commentary)
 By Claire Sibonney
 TORONTO, Oct 21 (Reuters) - Toronto's main stock index
opened sharply higher on Friday as commodity prices rose on
hopes for progress towards a resolution to Europe's debt crisis
ahead of an anxiously awaited weekend EU summit.
 France and Germany said in a joint statement that European
leaders would discuss a solution to the crisis on Sunday, but
no decisions would be adopted before a second meeting to be
held by Wednesday at the latest. [ID:nL5E7LL0DX]
 All 10 of the TSX's main sectors were stronger, led by
energy and financial issues. Among the top gainers, Canadian
Natural Resources CNQ.TO rose 2.8 percent to C$33.32, Suncor
Energy SU.TO added 2 percent to C$30.51 and Toronto-Dominion
Bank TD.TO climbed 1.3 percent to C$74.64.
 At 10:27 a.m. (1427 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was up 154.66 points, or 1.3
percent, at 11,984.99.
 Talk about more stimulus by the Federal Reserve was also
swirling through the market as two top Fed officials argued the
U.S. central bank should consider resuming large-scale mortgage
bond purchases. [ID:nN1E79J29O]
 "The bigger story is comments coming out of the Fed," said
Fergal Smith, managing market strategist at Action Economics.
 "Those measures suggests that additional Fed easing is
waiting in the wings. I think it's negative for the (U.S.)
dollar, it's supportive of gold, supportive of risky assets,
and I think that's what seems to be  churning through the
 Safe-haven gold prices were in fact stronger, despite the
risk-on tone in the market. Recently depressed precious metal
miners rallied 1.1 percent, with Barrick Gold ABX.TO up 0.8
percent at C$45.31 and Goldcorp G.TO adding 0.9 percent to
 In individual company news, Precision Drilling PD.TO
climbed 1.6 percent to C$11.78 after reporting a 48 percent
rise in third-quarter profit. [ID:nL3E7LL1KC]
 Contract electronics maker Celestica rose 2.3 percent to
C$8.08 after announcing its third-quarter profit more than
doubled. [ID:nL3E7LK3BD]
 ($1=$1.01 Canadian)
 (Reporting by Claire Sibonney; editing by Rob Wilson)