CANADA STOCKS-TSX gains as Fed comments ease economic jitters

Fri Aug 27, 2010 4:31pm EDT
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* TSX up 226.54 points, or 1.94 percent, at 11,879.72

* Fed's Bernanke says will act to spur growth if needed

* Index gains 1.3 percent for the week (Updates to close, adds quote)

By Jennifer Kwan

TORONTO, Aug 27 (Reuters) - Toronto's main stock index notched its steepest one day gain in just over 10 weeks on Friday, led by strong 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, in an address to an annual conference of global central bankers hosted by the Fed, downplayed concerns that the company might slip back into recession. [ID:nN27259859]

But investors were pleased that the central bank chairman said the Fed is prepared to do all that it can to ensure economic recovery, said Steve Ibel, institutional equities trader at Beacon Securities, in Halifax, Nova Scotia.

"That comment is basically reassuring that the Fed's going to step in and help out in whatever way they can should the economy continue weaken," he said.

The TSX index climbed sharply, led by its three main sectors: energy, financials and materials. The resource-laden market was also supported by strong oil and base metal prices. [O/R] [METL/]   Continued...