CANADA STOCKS-TSX jumps 1 pct on Greek optimism, ECB cut

Thu Nov 3, 2011 11:59am EDT
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 * S&P/TSX composite up 119.26 points at 12,361.02
 * Greek PM's softer vote stance drives gains
 By Jon Cook
 TORONTO, Nov 3 (Reuters) - Toronto's main stock index
extended gains on Thursday, rising 1 percent, after the Greek
Prime Minister softened his stance on a referendum on the
country's vital bailout package.
 After a call for his resignation by opposition party
members, Greek leader George Papandreou retreated from his push
for a confidence vote on the euro-zone rescue fund, which had
wreaked havoc on global financial markets. [MKTS/GLOB]
 Financial markets and commodity prices responded
 "They're pretty well trading with the headlines that are
coming out of Greece right now," said Robert Kavcic, an
economist with BMO Capital Markets.
 Oil, gold and copper prices also got lift from the European
Central Bank's surprise decision to cut its main interest rate
to tackle a worsening debt crisis affecting the euro zone, a
move that promised to boost credit availability and brighten
commodity demand prospects. [O/R] [GOL/] [MET/L]
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE was up 119.26 points, or 1 percent, at 12,361.02 at
midday, after falling just below the break-even line to
12,237.26, early in the session.
 Seven of Canada's top main sectors were higher, led by
energy stocks, which were up more than 2 percent.
 Canadian Natural Resources CNQ.TO led the sector, rising
7 percent to C$37.41. Suncor Energy SU.TO was up 2.9 percent
to C$32.71.
 Canadian Natural's quarterly profit rose 40 percent and
topped analyst expectations on higher output and crude price,
and the country's No. 2 oil producer forecast 17 percent
production rise in 2012. [ID:nL4E7M31JS]
 The commodities-reliant materials sector rose more than 1
percent, lifted by higher gold and copper stocks. Barrick Gold
ABX.TO was the biggest gainer, rising 1.7 percent to
 U.S. Institute for Supply Management report that showed the
vast U.S. services sector slowed modestly in October to its
lowest level in three months, produced a slight drag on
markets. [ID:nN1E7A20JG]
 (Editing by Jeffrey Hodgson)