CANADA STOCKS-TSX hits 1-month high on China, EU optimism

Mon Oct 24, 2011 4:30pm EDT
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 *TSX ends up 212.79 points, or 1.8 pct, at 12,162.28
 *Six of 10 index sectors stronger, health care down
 *China's manufacturing sector expands in October
 *All eyes on Wednesday EU summit
 (Updates to close)
 By Claire Sibonney
 TORONTO, Oct 24 (Reuters) - Toronto's main stock index
rallied to its highest close in more than a month on Monday,
lifted by encouraging manufacturing data from China and
optimism that European leaders may soon strike a deal to fix
the euro-zone debt crisis.
 Resource shares were the big gainers as oil, copper and
other commodity prices rallied. [O/R] [MET/L]
 Suncor Energy SU.TO jumped 4.3 percent to C$31.58, and
Teck Resources TCKb.TO climbed 5.8 percent to C$36.80 after
Chinese data that showed a rebound in manufacturing activity,
which eased fears of an abrupt slowdown in the world's
second-largest economy. [ID:nL3E7LL1AE]
 "A lot of that is probably short-covering. But still, I
think that's driving our markets," said Sal Masionis,
stockbroker at Brant Securities.
 Bullion prices also rose, moving in line with risk assets
rather than safe-haven investments, as European leaders edged
closer to a solid plan to resolve the euro zone crisis. [GOL/]
 Goldcorp G.TO was up 3.2 percent at C$46.44, and   
Barrick Gold ABX.TO added 3.4 percent to C$46.45.
 European Union leaders meeting in Brussels on Sunday neared
agreement on bank recapitalization and on how to leverage their
rescue fund to try to stop bond market contagion. But final
decisions were deferred until a second summit on Wednesday.
 "What happens on Wednesday is going to ultimately decide if
stocks can go higher or not," said Robert Kavcic, an economist
at BMO Capital Markets.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended up 212.79 points, or 1.78 percent, at
12,162.28, its highest close since Sept 20.
 TSX sentiment also benefited from a jump in U.S. stock
markets on Monday after strong earnings from Caterpillar and
some proposed acquisitions. [.N]
 Six of the TSX index's 10 sectors were in positive
territory. Health care dropped 5.5 percent, driven down by
insurer SXC Health Solutions Corp SXC.TO, which plunged 23
percent to C$43.52 after U.S. health insurer Cigna Corp <CI.N >
said it will buy one of SXC's biggest customers.
 Another big mover was Silvercorp SVM.TO, which surged 17
percent to C$9.60 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=$1.00 Canadian)
 (Additional reporting by Jon Cook; editing by Peter Galloway)