CANADA STOCKS-TSX edges higher as gold rallies

Tue Oct 25, 2011 11:04am EDT
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   * TSX up 36.89 points, or 0.3 pct, at 12,199.17
 * Golds lead gains, financials drag on downside
 (Updates with details, commentary)
 By Claire Sibonney
 TORONTO, Oct 25 (Reuters) - Toronto's main stock index
turned higher on Tuesday morning, hitting a one-month peak
and reversing steep losses in volatile trade as gold prices
rallied following grim U.S. consumer confidence data.
 Among the most influential gainers, Barrick Gold Corp
(ABX.TO: Quote) rose 2.6 percent to C$47.64 and Goldcorp Inc (G.TO: Quote)
picked up 2.7 percent to C$47.69 after a report showed U.S.
consumer confidence unexpectedly dropped in October to its
lowest level in two and a half years. [GOL/] [ID:nN1E79N1P8]
 The TSX was already outperforming U.S. markets, despite a
torrent of negative headlines, as traders cited talk that a
European Union summit for Wednesday has been canceled.
 "This is a weird market where we're trading on headlines
more than any fundamental news. So the market came off sharply
after a rumor that tomorrow's EU meeting was postponed and then
the market rallied back when the news was actually denied (and)
that tomorrow's meeting will be held as expected," said Francis
Campeau, a broker at MF Global Canada in Montreal.
 "We've underperformed so much on the way up ... today seems
like we're playing catch-up."
 At 10:43 a.m. (1443 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was up 36.89 points, or 0.3
percent, to 12,199.17, after falling more than 1 percent
shortly after the open, the index rebounded to rise as high as
12,203.51, its strongest level since Sept. 21.
 Economically sensitive financials were down 0.3 percent,
however, after the Bank of Canada held its key interest rate
steady, dropping any mention of the need to raise rates as it
slashed its growth and inflation projections. [ID:nN1E79O0F9]
 Toronto-Dominion Bank was the heaviest laggard, falling 0.6
percent to C$74.50. TD was further pressured after discount
brokerage TD Ameritrade AMTD.O, in which the bank holds a
large stake, reported lower than expected quarterly profit.
 On the domestic earnings front, Canadian Pacific Railway
(CP.TO: Quote) slipped 1.5 percent to C$58.95 after the No. 2 railway
reported a lower third-quarter profit as fuel costs rose 43
percent. [ID:nL3E7LP223]
 West Fraser Timber (WFT.TO: Quote) fell 2.1 percent to C$41.67
after posting a sharp drop in third-quarter profit, as a weak
U.S. housing market continued to hurt the lumber and wooden
panels maker. [ID:nL3E7LO39O]
 In other company news, Research In Motion RIM.TO was down
0.9 percent at C$23.35 after announcing BlackBerry business
cloud services for Microsoft Office 365. [ID:nWNAB5050]
 ($1=$1.01 Canadian)
 (Reporting by Claire Sibonney; editing by Rob Wilson)