CANADA STOCKS-TSX surges on Greek hopes, earnings

Thu Apr 29, 2010 11:06am EDT
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*TSX up 137.77 points, or 1.1 percent, at 12,214.66

*Financials, energy, materials lead index higher

By Claire Sibonney

TORONTO, April 29 (Reuters) - Toronto's main stock index rose more than 1 percent on Thursday morning after two sessions of losses as fears over sovereign debt in the euro zone ebbed slightly and company earnings continued to impress the market.

Greece readied severe austerity measures to secure multibillion-dollar aid plans, providing relief to financial markets, and Canadian banking shares were up 1.2 percent. [ID:nLDE63S0BL]

Royal Bank of Canada (RY.TO: Quote), the country's biggest lender, surged 2.2 percent to C$61.92, and No. 2 Toronto-Dominion Bank (TD.TO: Quote) added 1.3 percent to C$75.56.

"Risk is back on this morning," said Francis Campeau, broker at MF Global Canada. "The overall earnings picture has been good. The Pandora's box is what's going to come up out of Europe. That's the risk right now."

On the earnings front, Potash Corp of Saskatchewan (POT.TO: Quote), the world's largest fertilizer maker, rallied 1.2 percent to C$111.05, after it posted higher first-quarter earnings and as the price of corn strengthened, even though the company's outlook fell short of analysts' expectations. [ID:nN29200817]

Oil rose above $84 a barrel on encouraging signs of buoyant U.S. fuel demand, shrugging off credit rating downgrades for southern European countries. The TSX index's powerhouse energy sector rose 2 percent. [O/R]   Continued...