*TSX up 144.54 points at 11,237.04
*Nine out of 10 sectors higher (Updates with details, commentary)
By Claire Sibonney
TORONTO, July 6 (Reuters) - Toronto’s main stock index shot higher on Tuesday morning, bouncing back from its lowest close in eight months, helped by commodity prices, which were swept up in a global rally of riskier assets.
The index was firing on two of its three most powerful cylinders with its energy sector up 2.4 percent and the financial group up 1.7 percent.
Oil prices rose above $73 a barrel, rebounding after several days of declines. Copper prices firmed to a one-week high, pushing base-metals shares 5.2 percent higher. [O/R] [MET/L]
Apart from scooping up bargains on recently sold-off stocks, investors were relieved by signs of strength in Europe’s banking system and by a rally in overseas markets.
“The news flow out of Europe has been better ... that’s providing the market with some direction,” said Barry Schwartz, vice-president and portfolio manager at Baskin Financial Services.
“All the bad news is out there and that’s what the market wants.”
French banks are likely to pass Europe-wide stress tests, Bank of France head and European Central Bank Governing Council member Christian Noyer said on Tuesday, relieving some concerns about the health of the sector ahead of the tests later this month.
On the downside, gold extended losses to hit a six-week low, driving gold-mining shares 1.2 percent lower. Barrick Gold Corp (ABX.TO) was down 1.5 percent at C$45.27. [GOL/]
At 10:30 a.m. (1430 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 144.54 points, or 1.3 percent, at 11,237.04.
Nine of the index’s 10 sectors were higher. The materials group was down 0.1 percent, pulled lower by the fall in golds.
On Monday, the index closed at 11,092.50, its weakest level since Nov. 4, 2009.
“I don’t know what to make of the investor sentiment right now,” Schwartz said. “People are wildly bearish ... they’re traumatized from two or three bad months and that’s leading to real angst and fear.”
$1=$1.05 Canadian Reporting by Claire Sibonney; editing by Peter Galloway