CANADA STOCKS-TSX rises sharply as Bernanke comments soothe

Fri Aug 27, 2010 12:36pm EDT
 
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* TSX up 185.74 points, or 1.59 percent, at 11,838.92

* Fed to provide more monetary accommodation if needed

* All of TSX main sectors higher (Updates to midday, adds quote)

By Jennifer Kwan

TORONTO, Aug 27 (Reuters) - Toronto's main stock index rose sharply on Friday, led by gains in resource and financial issues, after Federal Reserve Chairman Ben Bernanke said the U.S. central bank was ready to take further steps to aid the recovery.

Bernanke said on Friday the recovery has softened more than expected and the Fed is ready to take further steps if needed to spur the stumbling U.S. economy. [ID:nN27259859]

The comments sent the broader TSX index sharply higher, led by its three main sectors: energy, financials and materials. The resource-laden market was also supported by strong oil, gold and base metal prices. [O/R] [GOL/] [METL/]

Suncor Energy (SU.TO: Quote) rose 1.6 percent to C$32.67 and Royal Bank of Canada (RY.TO: Quote) climbed 2.5 percent to C$50.16. Goldcorp (G.TO: Quote) was up 1.4 percent at C$46.49 and Teck Resources (TCKb.TO: Quote) was higher by 3.1 percent at C$34.60.

The big issue that has been weighing on markets recently has been the idea that the U.S. economy will grow very slowly, or even see a double-dip recession, said Julie Brough, vice-president at Morgan Meighen & Associates.   Continued...