CANADA STOCKS-TSX hits 1-month high as gold rallies

Tue Oct 25, 2011 1:45pm EDT
 
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   * TSX up 60.58 points, or 0.5 pct, at 12,222.86
 * Golds lead gains, financials drag
 * European debt crisis uncertainty weighs
 (Updates prices, adds details, comments)
 By Jon Cook
 TORONTO, Oct 25 (Reuters) - Toronto's main stock index hit
a one-month peak on Tuesday afternoon, reversing steep losses
early in the day, as gold prices rallied on safe-haven buying
following grim U.S. consumer confidence data.
 Gold miners were among the most heavily weighted gainers
with Barrick Gold Corp ABX.TO up 3.2 percent at C$48.83 and
Goldcorp Inc G.TO rising 2.6 percent to C$48.83 after a
report showed U.S. consumer confidence dropped unexpectedly in
October to its lowest level in 2-1/2 years. [GOL/]
[ID:nN1E79N1P8]
 The TSX outperformed U.S. markets, which were pulled down
by a torrent of negative reports, including talk that a key
European Union debt summit scheduled for Wednesday was in
danger of being canceled.
 "This is a weird market where we're trading on headlines
more than any fundamental news," said Francis Campeau, a broker
at MF Global Canada in Montreal. "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."
 At 1:07 p.m. (1707 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was up 60.58 points, or 0.5
percent, at 12,222.86, its highest level since Sept. 21. The
index had dropped more than 1 percent shortly after the open.
 Economically sensitive financials were down 0.3 percent
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]
 Canadian Imperial Bank of Commerce CM.TO was the heaviest
laggard, falling more than 1 percent to C$74.41.
 Toronto-Dominion Bank TD.TO was down 0.9 percent at
C$74.29 after discount brokerage firm TD Ameritrade AMTD.O,
in which the bank holds a large stake, reported lower than
expected quarterly profit. [ID:nN1E79K1LD]
 "They're down, but not dramatically by global standards,"
said Paul Hand, managing director at RBC Capital Markets.
"We've had a pretty good rally anticipating a positive outcome
(from the European meetings), which I don't think will be as
neat and clean as politicians are wont to do."
 On the Canadian earnings front, Canadian Pacific Railway
CP.TO slipped 1.6 percent to C$58.86 after the country's No.
2 railway reported a lower third-quarter profit as fuel costs
rose 43 percent. [ID:nL3E7LP223]
 In other company news, Research In Motion RIM.TO was down
1.5 percent at C$23.22 after announcing BlackBerry business
cloud services for Microsoft Office 365. [ID:nWNAB5050]
 ($1=$1.01 Canadian)
 (Additional reporting by Claire Sibboney; editing by Peter
Galloway)