September 7, 2011 / 3:13 PM / 7 years ago

CANADA STOCKS-TSX rebounds as concern over EU debt crisis eases

 * TSX up 60.50 points, or 0.48 percent at 12,579.04
 * Energy, financials lead gains
 * Nine of 10 sectors higher, golds drag
 By Trish Nixon
 TORONTO, Sept 7 (Reuters) - Toronto’s main stock market index rose on Wednesday after three days of losses, on hopes the European debt crisis might ease after Germany’s top court smoothed the way for Berlin’s participation in bailout packages.
 European stocks bounced back from a two-year low after the court rejected lawsuits aimed at blocking the country’s participation in aid to Greece and other nations, giving temporary relief to investors after this week’s sharp sell-off in riskier assets. [MKTS/GLOB]
 “The global risk trade is back on track,” said Francis Campeau, broker at MF Global Canada in Montreal, noting that gold was being sold off, while energy, base metals and financials were climbing. “Yesterdays winners are today’s losers and vice-versa.”
 Beaten-down energy shares rallied to lead the index’s gains, adding 1.7 percent collectively as oil was lifted by supply issues on both sides of the Atlantic and as the news out of Europe boosted fragile investor confidence. [O/R]
 Suncor Energy (SU.TO) was up 2.3 percent at C$29.94, and Canadian Natural Resources (CNQ.TO) jumped 1.8 percent to C$35.17.
 Financial issues also recovered some of their recent losses, rising 1 percent. Toronto-Dominion Bank (TD.TO) was up 1.1 percent at C$77.42, while Royal Bank of Canada (RY.TO) added 1.04 percent to C$48.71.
 At 10:35 a.m (1435 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 60.50 points, or 0.48 percent at 12,579.04. Nine of the 10 main groups were higher.
 Gold stocks, which have supported the index in recent downturns, tracked the price of the safe-haven metal lower, limiting gains and causing the TSX to underperform U.S. markets. [GOL/]
 “Same way we tend to outperform on the way down, we tend to lag on the way up,” said Campeau.
 The gold-mining sub-group lost 2.7 percent, with Barrick Gold (ABX.TO) down 2.4 percent to C$51.90, and Goldcorp (G.TO) off 2.2 percent at C$52.92.  (Editing by Jeffrey Hodgson)                  

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