CANADA STOCKS-TSX buoyed by U.S. GDP data

Fri Aug 27, 2010 9:57am EDT
 
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* TSX gains 0.45 percent to 11,705.49

* U.S. Q2 growth revised down to 1.6 pct pace

* All 10 sectors gain ahead of Bernanke speech (Adds details)

TORONTO, Aug 27 (Reuters) - Toronto's main stock index was firmer on Friday morning, helped by a report that showed U.S. second quarter growth was was better than anticipated, though revised lower.

U.S. second quarter GDP was revised lower to an annual rate of 1.6 percent versus expectations of 1.4 percent. [ID:nN26193565]

The relief was felt across all 10 sectors of Toronto's main stock index, led by the hefty financials, up 0.7 percent, which are often a play on the broader economy. Markets have been mulling the possibility of a double-dip recession, sending riskier assets lower in recent weeks.

"The markets have been most worried about the possibility of another recession and another slowdown. Seeing the GDP number where it was helps put a little bit of confidence back into the market here," said Michael Sprung, president at Sprung & Co. Investment Counsel

"Also we're partially responding to some of the selloff we've seen as well. We're getting a bit of a swing the other direction."

But all eyes are on U.S. Federal Reserve Chairman Ben Bernanke, who is expected to shed light on whether the U.S. central bank will support the economy with fresh injections of cash and that the U.S. economy is facing uncertain prospects. [ID:nN27251934]   Continued...