CANADA STOCKS-TSX steady after encouraging US GDP data

Fri Oct 26, 2012 10:52am EDT
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* TSX up 11.50 points, or 0.09 pct, at 12,311.73
    * Modestly outperforms Wall Street

    By Claire Sibonney
    TORONTO, Oct 26 (Reuters) - Canadian stocks were little
changed in choppy trade on Friday after U.S. economic growth
data for the third quarter came in higher than expected and
offset uninspiring corporate earnings reports.
    U.S. gross domestic product expanded at a 2 percent annual
rate in the quarter as a late burst of consumer spending
outweighed the first business cutbacks in investment in more
than a year. GDP growth in the second quarter was 1.3 percent.
    Among heavyweight gainers, Enbridge Inc rose 0.8
percent to C$39.34, TransCanada Corp was up 0.8 percent
at C$44.46, and Cenovus Energy climbed 0.7 percent to
    "My impression is that the U.S. GDP data has given stocks
some reprieve after weakness in overseas markets and generally
disappointing corporate earnings," said Fergal Smith, managing
market strategist at Action Economics.
    At 10:33 a.m. (1433 GMT), the Toronto Stock Exchange's
S&P/TSX composite index was up 11.50 points, or 0.09
percent, at 12,311.73.
    The TSX was outperforming Wall Street after lackluster
results from and Apple Inc. 
    "The technical backdrop (for U.S. stocks) has worsened and
there are significant uncertainties in the next couple of weeks,
so there's a real reason to trim risk ahead of the U.S.
election," Smith said.
    Among heavyweight laggards, Canadian Natural Resources
 fell 0.9 percent to C$29.65, Teck Resources 
dropped 1.7 percent to C$31.18, and Potash Corp lost
0.6 percent to C$39.93.
    Also weighing on sentiment, Spain's unemployment rate hit a
record high in the third quarter, with one in four out of work
and more expected to lose their jobs in 2013 as the next phase
of government cutbacks kicks in. 
    In other U.S. data, the Thomson Reuters/University of
Michigan's final reading for U.S. consumer sentiment in October
was revised slightly lower.