CANADA STOCKS-TSX hits one-month high China data, Europe hopes

Mon Oct 24, 2011 2:43pm EDT
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 * Reaches highest level since Sept. 21
 * Chinese PMI data give initial boost
 * Gold, base metal miners lead gains
 By Jon Cook
 TORONTO, Oct 24 (Reuters) - Toronto's main stock index rose
more than 1 percent to hit a one-month high  on Monday, lifted
by encouraging manufacturing data from China and hopes Europe's
leaders will reach a debt deal at a crucial summit this week.
 China's vast manufacturing sector showed signs of life
again after a period of contraction, as the country's flash
purchasing managers' index rose above the 50-point mark for the
first time since June. [ID:nL3E7LL1AE]
 That had an immediate impact on Canadian resource shares,
as commodity prices, including oil, gold and copper rallied.
[O/R] [MET/L] [GOL/]
 The market was led higher by Suncor Energy (SU.TO: Quote), up more
than 4 percent to C$31.59, followed by Barrick Gold (ABX.TO: Quote),
up 3.8 percent to C$46.62, and Goldcorp (G.TO: Quote), up 3.7 percent
to C$46.65.
 "The Chinese number was pretty well responsible for
triggering the buying in commodities, and that was most
directly having an impact on Canadian stocks," said Robert
Kavcic, an economist at BMO Capital Markets.
 "There are fundamental positives that are spurring the
market," he added. "It's just what happens on Wednesday is
going to ultimately decide if stocks can go higher or not."
 Global stocks hit a seven-week high, cheered by hopes that
European Union leaders were close to consummating an agreement
on bank recapitalization ahead of a key summit on Wednesday.
 "They're still dealing with the problems they have in
Europe and nothing is worse, nothing is a whole lot better yet,
but at least we're standing where we know where we are," said
Fred Ketchen, director of equity trading at ScotiaMcLeod.
 Some progress was made on the weekend in Brussels, with
agreements near on how to leverage the European Union's EFSF
rescue fund to try to stop bond market contagion.
 At 2:10 p.m. (1810 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was up 196.12 points, or 1.6
percent, at 12,145.52.
 The index rose as high as 12,156.03, its strongest level
since Sept 21.
 The TSX also benefited from better sentiment on U.S.
markets after strong earnings from Caterpillar. [.N]
 Six of the TSX index's 10 main sectors were stronger.
Health care dropped 4.4 percent, driven down by SXC Health
Solutions Corp SXC.TO, the net loss leader.
 SXC plunged 20 percent to C$45.17 after U.S. health insurer
Cigna Corp <CI.N > said it will buy one of SXC's biggest
customers. [ID:nL3E7LO2FR]
 Another big mover was Silvercorp (SVM.TO: Quote), which surged 17
percent to C$9.56 after it said that a KPMG Forensic report had
confirmed its sales figures. The figures had been questioned in
an anonymous short-seller report. [ID:nN1E79N0A5]
 ($1=$1.01 Canadian)
 (With additional reporting by Claire Sibonney; Editing by
Jeffrey Hodgson)