December 16, 2008 / 9:46 PM / 10 years ago

CANADA STOCKS-TSX rallies after U.S. Fed rate cut

*TSX jumps 3.1 pct after U.S. Fed rate cut

*Every sector except healthcare makes gains

*Gold surges above $850, lends support (Adds details, comments, updates closing numbers)

By Wojtek Dabrowski

TORONTO, Dec 16 (Reuters) - Toronto’s main stock index surged more than 3 percent in a broad rally on Tuesday after the U.S. Federal Reserve cut its target for overnight interest rates to a record low range of zero to 0.25 percent and said it would do everything it can to chase away the economic gloom.

Every sector on the index save the relatively small health care group moved higher after the Fed announced the deeper-than-expected cut.

“If you look at the Fed statement, I would say they just told you that, in poker language, they just went all in,” said Levente Mady, a broker at MF Global Canada in Vancouver.

“They’re going to be throwing everything at this thing that they have available.”

The Toronto benchmark’s energy group added 4.01 percent, while materials rose 5.57 percent. Financials rose 1.38 percent.

The S&P/TSX composite index .GSPTSE itself rose 262.28 points, or 3.1 percent, to close at 8,724.11.

The price of gold, which rallied above $850 an ounce after the Fed’s move, also gave support to the resource-heavy Toronto market.

Big gainers of the day included fertilizer producer Agrium AGU.TO, which rose 10.25 percent to end at C$41.72, as well as Agnico-Eagle Mines (AEM.TO), which jumped 7.3 percent to finish at C$56.02.

Losers included Bank of Nova Scotia (BNS.TO), which fell 2.9 percent to C$30.10, and Forzani Group FGL.TO, which dropped 9.2 percent to C$7.72.

$1=$1.20 Canadian Reporting by Wojtek Dabrowski; editing by Peter Galloway

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