4 Min Read
* TSX rises 0.58 percent to 12,171.73
* U.S. durables, German Ifo data lifts sentiment
* Golds mixed despite record gold (Adds details)
TORONTO, Sept 24 (Reuters) - Toronto's main stock index gathered steam on Friday morning as resource prices rose, with gold hitting a record high, after new U.S. and German data eased recent jitters about the pace of global economic recovery.
The rise in key commodity prices supported the resource-heavy index. Gold rallied above $1,300 an ounce, while copper and aluminum swung to five-month highs, helped by the recent downward trend for the U.S. dollar trend. The price of oil popped above $76 a barrel, buoyed by the bullish data from Germany and the United States.
At 10:17 a.m. (1417 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 69.94 points, or 0.58 percent, at 12,171.73, breaking a three-day slide. All 10 of the index's main groups were higher, with key advancers found in financials.
Often a play on the broader economy, the financial group was up 0.8 percent with all the big banks and big insurers advancing. Royal Bank of Canada (RY.TO), Bank of Montreal (BMO.TO) and Manulife Financial (MFC.TO) all gained more than 1 percent.
Among commodity gainers, Teck Resources TCKb.TO climbed 2.4 percent to C$40.05, while Imperial Oil (IMO.TO) was up 0.9 percent at C$38.17.
In Germany, the Ifo business climate survey helped ease some recent concerns over the health of the global economy recovery. In the United States, August orders for long-lasting U.S. manufactured goods, excluding transportation, rose more than expected.
This figure overshadowed the headline durable goods figures that showed new orders fell more than expected in August to post their biggest decline in a year as bookings for aircraft and motor vehicles tumbled. [ID:nN24184114]
Data showing U.S. new home sales were unchanged in August failed to move the market. [ID:nN2377778]
"The much stronger durable goods order out of the U.S. and a revision upwards in July confirm things are not as bad as what we're reading and what people are hearing," said Barry Schwartz, vice president and portfolio manager at Baskin Financial Services.
"The economy seems to still be growing (but) it may grow at a slower pace than people want."
Gold-mining shares were mixed despite the bullion price rise. Schwartz said the sector's rally seemed "toppy" and it might be a good time to prune gold holdings.
Goldcorp (G.TO) fell 0.2 percent to C$45.19, and Kinross (K.TO) slipped 0.46 percent to C$19.56. But Barrick Gold (ABX.TO) edged up 0.1 percent to C$48.28, and Agnico Eagle (AEM.TO) rose 0.75 percent to C$72.37.
Canadian Oil Sands Trust COS_u.TO lost 2.8 percent to C$25.10 as the biggest stakeholder in the Syncrude Canada Ltd joint venture lowered its target for the project's production this year by almost 5 percent as work on an upgrader extends longer than expected. [ID:nN23257593]
Potash Corp (POT.TO) eased 0.64 percent to C$149.54 after BHP Billiton cleared the first regulatory hurdle in its $139 billion hostile takeover bid for the fertilizer producer. But the miner still has a long way to go trying to persuade Canadian authorities and Potash shareholders. [ID:nN23243172]
($1=$1.03 Canadian) (Reporting by Ka Yan Ng, editing by Peter Galloway)