January 8, 2015 / 3:59 PM / 3 years ago

CANADA STOCKS-TSX advances on positive U.S. data, Fed signals

* TSX up 168.60 points, or 1.18 percent, at 14,453.60

* All 10 main index sectors advance

* Valeant jumps 4.6 percent after raising outlook

By John Tilak

TORONTO, Jan 8 (Reuters) - Canada’s main stock index strengthened on Thursday as solid U.S. economic data boosted sentiment and recent comments from the Federal Reserve signaled that the U.S. central bank was in no hurry to raise interest rates.

Latest labor-market figures showed strength in the U.S. economy, with the number of jobless claims falling last week and job cuts declining for a second straight month in December.

Minutes from a recent policy meeting indicated that Fed members debated how to communicate plans to eventually begin raising interest rates later this year.

The Toronto equity market rebounded for a second straight session, following sharp selloffs on concerns about a global crude supply glut that took down oil prices.

“This is based on relief over the direction of interest rates and some buying on what was seen as overdone weakness in the early sessions of the new year,” said Andrew Pyle, senior wealth advisor and portfolio manager at ScotiaMcLeod.

“Market volatility is going to remain elevated,” he added. “That’s a pattern we’re going to continue to see this year, especially as we head towards a transition in Fed policy.”

The Toronto Stock Exchange’s S&P/TSX composite index was up 168.60 points, or 1.18 percent, at 14,453.60. All 10 main sectors on the index were higher.

Financials advanced 0.5 percent, with Bank of Nova Scotia rising 0.7 percent to C$64.11 and Toronto Dominion Bank gaining 0.4 percent to C$53.10.

Shares of energy producers climbed 1.8 percent, helped by higher U.S. crude oil prices. Canadian Natural Resources Ltd was up 2.7 percent to C$33.06 and Suncor Energy Inc added 2 percent to C$35.97.

In corporate news, Valeant Pharmaceuticals International Inc raised its 2015 guidance for adjusted profit more than expected as the drugmaker sees growth from existing products and a stream of small acquisitions. The stock jumped 4.6 percent to C$179.50. (Editing by James Dalgleish)

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