October 21, 2011 / 2:48 PM / 7 years ago

CANADA STOCKS-TSX rallies on euro hopes, talk of Fed stimulus

   * TSX rises 154.66 points, or 1.3 pct, at 11,984.99
 * All 10 main sectors stronger, led by commodities
 * European leaders to hold crisis summit on Sunday
 * Fed officials argue for more mortgage bond purchases  (Updates with details, commentary)
 By Claire Sibonney
 TORONTO, Oct 21 (Reuters) - Toronto’s main stock index opened sharply higher on Friday as commodity prices rose on hopes for progress towards a resolution to Europe’s debt crisis ahead of an anxiously awaited weekend EU summit.
 France and Germany said in a joint statement that European leaders would discuss a solution to the crisis on Sunday, but no decisions would be adopted before a second meeting to be held by Wednesday at the latest. [ID:nL5E7LL0DX]
 All 10 of the TSX’s main sectors were stronger, led by energy and financial issues. Among the top gainers, Canadian Natural Resources (CNQ.TO) rose 2.8 percent to C$33.32, Suncor Energy (SU.TO) added 2 percent to C$30.51 and Toronto-Dominion Bank (TD.TO) climbed 1.3 percent to C$74.64.
 At 10:27 a.m. (1427 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 154.66 points, or 1.3 percent, at 11,984.99.
 Talk about more stimulus by the Federal Reserve was also swirling through the market as two top Fed officials argued the U.S. central bank should consider resuming large-scale mortgage bond purchases. [ID:nN1E79J29O]
 “The bigger story is comments coming out of the Fed,” said Fergal Smith, managing market strategist at Action Economics.
 “Those measures suggests that additional Fed easing is waiting in the wings. I think it’s negative for the (U.S.) dollar, it’s supportive of gold, supportive of risky assets, and I think that’s what seems to be  churning through the market.”
 Safe-haven gold prices were in fact stronger, despite the risk-on tone in the market. Recently depressed precious metal miners rallied 1.1 percent, with Barrick Gold (ABX.TO) up 0.8 percent at C$45.31 and Goldcorp (G.TO) adding 0.9 percent to C$45.40.
 In individual company news, Precision Drilling (PD.TO) climbed 1.6 percent to C$11.78 after reporting a 48 percent rise in third-quarter profit. [ID:nL3E7LL1KC]
 Contract electronics maker Celestica rose 2.3 percent to C$8.08 after announcing its third-quarter profit more than doubled. [ID:nL3E7LK3BD]
 ($1=$1.01 Canadian)  (Reporting by Claire Sibonney; editing by Rob Wilson)                 

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