December 12, 2012 / 4:04 PM / 6 years ago

CANADA STOCKS-TSX at 1-month high; metals rally ahead of Fed move

* TSX rises 29.79 points, or 0.24 percent, to 12,312.15
    * Gold companies Barrick, Goldcorp lead rally
    * Seven of 10 main sectors advance

    By John Tilak
    TORONTO, Dec 12 (Reuters) - Canada's main stock index hit a
one-month high on Wednesday, led by the materials sector and
higher resource prices, and supported by expectations that the
U.S. Federal Reserve will announce a fresh round of bond buying
to boost the economy.
    The Fed's anticipated move overshadowed concerns about
ongoing U.S. congressional negotiations aimed at averting steep
tax hikes and spending cuts due to kick in early in 2013. 
    The U.S. central bank looked certain both to extend its
purchases of mortgage-backed debt and replace another expiring
stimulus program with a new bout of money creation.
    "Everyone is waiting to see what the Fed is going to say
this afternoon. There is a general feeling that the U.S. economy
is going to be okay," said David Baskin, president of Baskin
Financial Services.
    In midmorning trading, the Toronto Stock Exchange's S&P/TSX
composite index was up 29.79 points, or 0.24 percent,
at 12,312.15, after earlier climbing to 12,331.53, its highest
since Nov. 7.
    "It's the December rally. The TSX had a terrible month in
November. It's a rebound from that," Baskin said.
    Seven of the 10 main sectors on the index advanced. 
    Commodity prices rose, driving a rally in the materials
sector, which includes mining companies. Barrick Gold Corp
 rose 1.4 percent to C$34.02, and Goldcorp Inc 
gained 1.5 percent to C$37.11. Gold prices were up about 0.5
    The financial sector, the index's largest, climbed 0.4
percent. Toronto Dominion Bank was up 0.6 percent at
C$81.11, and Bank of Nova Scotia added 0.6 percent to
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