CANADA STOCKS-TSX rebounds on U.S. GDP data

Fri Aug 27, 2010 10:41am EDT
 
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* TSX gains 0.32 percent to 11,690.98 after brief dip

* U.S. Q2 growth tops expectations at 1.6 pct

* Most sectors bounce higher (Adds details)

TORONTO, Aug 27 (Reuters) - Toronto's main stock index was firmer on Friday morning, helped by revised quarterly growth figures that showed the U.S. economy was performing better than anticipated.

While U.S. second quarter GDP growth was revised lower to an annual rate of 1.6 percent, from an earlier 2.4 percent, it still topped expectations of 1.4 percent pace [ID:nN26193565], helping send relief across eight of the TSX's 10 main sectors.

The hefty financial group, often a play on the broader economy, was up 0.75 percent on the news.

Key gainers included Royal Bank of Canada (RY.TO: Quote), up 0.9 percent at C$49.38, recovering some of Thursday's losses after it reported disappointing quarterly results.

"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," Sprung said.   Continued...