* TSX up 209.97 points at 10,580.04
* Energy shares lead with 3.8 percent surge
* All 10 TSX sectors in higher territory (Adds details)
By Frank Pingue
TORONTO, June 1 (Reuters) - Toronto’s main stock index shot higher on Monday morning, reaching its highest level in more than seven months, as a surge in oil prices helped light a fire under its energy sector.
Energy shares gained 3.8 percent as expectations for a global economic recovery helped send oil prices more than 2 percent higher.
Another factor behind the index’s gain was data released early on Monday that showed Canada’s economy shrank less in the first quarter than was expected by analysts. [ID:N01454666]
“It’s a good start to the week as we’ve gotten through the majority of the earnings season with no big surprises,” said Peter Chandler, senior vice-president at Canaccord Capital in Waterloo, Ontario.
“And we’ve seen a deceleration of the downturn in the economy, which is sort of what you need as a precursor to start to have the economy improve somewhat.”
At 9:53 a.m. (1353 GMT), the S&P/TSX composite index .GSPTSE was up 209.97 points, or 2.02 percent, at 10,580.04, its highest level since Oct. 14. All 10 TSX sectors were higher.
$1=$1.08 Canadian Reporting by Frank Pingue; editing by Peter Galloway