CANADA STOCKS-TSX hits one-month high on European debt deal

Thu Oct 27, 2011 11:11am EDT
 
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 * 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: Quote), 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: Quote) 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)