2 Min Read
* TSX opens up 229.90 points, or 1.89 pct, at 12,415.96
* Energy, financials sectors see strongest gains
* European leaders, banks strike deal on Greek debt
By Jon Cook
TORONTO, Oct 27 (Reuters) - Toronto's main stock index opened sharply higher on Thursday, driven by investor relief that European policymakers reached a deal aimed at halting the region's two-year old debt crisis.
Global stocks were lifted by a much-anticipated deal on behalf of European leaders that foresees private banks and insurers accepting 50 percent losses on their Greek debt holdings. [MKTS/GLOB]
"What we're seeing, at least at the outset, is a relief rally," said Andrew Pyle, wealth advisor and associate portfolio manager at ScotiaMcLeod. "Sustaining this is really going to depend on whether the market actually believes this is the beginning of something more constructive going forward."
Energy stocks, up 2.5 percent, played the biggest role in leading the market higher. Oil jumped to $112 a barrel as the European deal and supportive U.S. data eased concerns that economic weakness could curb energy demand. [O/R]
Shares of Suncor Energy Inc (SU.TO), up 4.3 percent at C$32.58, led the sector.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE gained 229.90 points, or 1.89 percent, to 12,415.96 at the open. It rose as high as 12,467.92, its strongest level since Sept. 9.
The jubilant mood also resonated with the Canadian banking sector, which was up more than 2 percent. Royal Bank of Canada (RY.TO) did the most to lead financial sector higher, posting a 2.2 percent gain to C$49.23.
Solid U.S. economic news also contributed to the early euphoria, as data showed third-quarter GDP growing at its fastest pace in a year. [ID:nN1E79Q0FK] (Editing by Jeffrey Hodgson)