CANADA STOCKS-TSX rises moderately after early seesaw

Fri Feb 26, 2010 11:09am EST
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* TSX rises 0.2 percent to 11,655.11

* Investors sort through mixed U.S. data (Adds details)

TORONTO Feb 26 (Reuters) - Toronto's main stock index seesawed on Friday morning before heading higher as investors weighed stronger resource prices against mixed U.S. economic data.

The U.S. economy grew a touch faster than initially thought in the fourth quarter, soothing recent concerns about the strength of the rebound. [ID:nN26169261]

However, economic data that showed the U.S. housing market has not yet fully stabilized and weakening consumer sentiment left investors feeling cautious. [ID:nN26167386] [ID:nN26171094]

"It's a good news, bad news scenario. It's good news that it's recovering, but the bad news is that it's going to be a slow economic recovery. But, the fear of rising rates is just not there," said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.

Nakamoto said that, while the U.S. Federal Reserve's recent move to hike the discount rate may be a first step to higher interest rates, that second step was still "several miles away."

At 10:45 a.m. (1545 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 23.67 points, or 0.2 percent, at 11,655.11.

Top advancers included Research In Motion RIM.TO, up 1 percent at C$74.75, and Toronto-Dominion Bank (TD.TO: Quote), up 0.5 percent at C$67.20. Barrick Gold (ABX.TO: Quote) was up 0.55 percent at C$39.91.   Continued...