October 13, 2010 / 9:00 PM / 8 years ago

CANADA STOCKS-TSX reaches 2-year high on golds, financials

   * TSX rises 0.78 percent to 12,673.31
 * Resources rally as gold hits record, U.S. dollar sags
 * Strong start to U.S. earnings season buoys sentiment  (Adds details)
 TORONTO, Oct 13 (Reuters) - Toronto’s main stock index closed sharply higher on Wednesday, led by commodity issues after the U.S. Federal Reserve signaled it may pump extra stimulus into the U.S. economy.
 Underpinned by a sagging U.S. currency, bullion prices set a record high, while the price of oil held close to $83 a barrel. Those bullish prices helped send the index’s materials group up 1.76 percent and the energy sector 0.9 percent higher.
 Eight of the index’s 10 main groups finished higher.
 The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed 97.67 points, or 0.78 percent, higher at 12,673.31, paring gains from the highest level in more than two years at 12,710.19 reached earlier in the session.
 “All that glitters is gold. The index is making two-year highs mostly bolstered by golds. Financials are also catching a bid,” said Francis Campeau, broker at MF Global Canada in Montreal. “
 Key advancers included Barrick Gold (ABX.TO), up 0.9 percent at C$49.41, and Goldcorp (G.TO), up 2.25 percent at C$45.45. Teck Resources TCKb.TO rose 2.89 percent to C$45.99, while Suncor Energy (SU.TO) climbed 0.46 percent to C$35.31.
 Financials were up 0.7 percent on the back of a higher profit at U.S. bank JPMorgan Chase & Co, with Royal Bank of Canada (RY.TO) adding 0.55 percent to C$55.29, while Bank of Montreal (BMO.TO) rose 0.62 percent to C$60.21.
 Stronger-than-expected U.S. corporate results from JPMorgan and Intel lifted sentiment. A solid start to U.S. earnings has given hope to investors that the majority of quarterly results in the United States and Canada will top analysts’ expectations.
 “The market is quite optimistic that the upcoming earnings season will be a good one,” said Elvis Picardo, analyst and strategist at Global Securities in Vancouver.
 Canada’s earnings season starts in earnest next week, with several energy companies kicking it off, starting with EnCana Corp. [ID:nN07267143]
 Expectations grew for further quantitative easing by the Fed after minutes from the U.S. central bank’s latest meeting seemed to confirm that it would soon inject cash into the market to support the flagging economy.
 ($1=$1.00 Canadian)  (Reporting by Ka Yan Ng; editing by Peter Galloway)                                        

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