CANADA STOCKS-TSX ends higher on firm earnings, Europe hopes

Wed Oct 26, 2011 5:04pm EDT
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* TSX ends up 76.31 points, or 0.63 pct, to 12,186.06

* Euro zone to plan leverage bailout fund helps sentiment (Updates with details, comments)

By Jon Cook

TORONTO, Oct 26 (Reuters) - Canadian stocks staged a late rally to close higher on Wednesday, shrugging off early losses, helped by encouraging third-quarter earnings and news from Europe about plans to tackle the region's debt crisis.

Markets responded positively to a report the euro zone will dip deeply into a $440 billion euro bailout fund, the details of which won't be revealed until November, according to a draft statement obtained by Reuters. [ID:nL5E7LQ4Q7]

Still, analysts said the uncertainly about the outcome of the European summit was a weight on the market.

"On the one side you have the European headwinds that are negative and making the market very jittery," said Luciano Orengo, a portfolio manager at Manulife Asset Management. "On the other side you've been having third-quarter earnings that are coming in better than expected."

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 76.31 points, or 0.63 percent, to 12,186.06. That corrected a brief negative spell earlier in the day when the index weakened to 12,052.53.

Canadian National Railway Co CNR.TO among the most influential gainers, rising 1.9 percent to C$76.56, after reporting a 19 percent jump in quarterly profit late on Tuesday. [ID:nN1E79J1VA]   Continued...