* TSX up 24.10 points, or 0.21 percent, at 11,567.57
* Bank of Canada raises rates, issues dovish statement
* Chinese stocks influence overcomes weak U.S. results (Adds details, quote)
By Jennifer Kwan
TORONTO, July 20 (Reuters) - Toronto’s main stock index climbed on Tuesday morning after opening lower as commodity prices took their cue from strong Chinese equities, pushing up the index’s heavily weighted resource issues.
The TSX’s materials sector, up 1.6 percent, led the move higher [GOL/] [MET/L]. Barrick Gold (ABX.TO) rose 1.5 percent to C$44.56, while Teck Resources TCKb.TO rallied 4 percent to C$34.38.
The TSX tracked the Shanghai composite index .SSEC, which rose 2 percent to its highest close in three weeks, buoyed by property stocks, as investors gained confidence that Beijing’s property policy would hold steady for the rest of the year after a series of tightening steps. [MKTS/GLOB]
“We had a stronger Chinese stock market and the Chinese stock market has been in the doldrums for a while. That’s starting to show some signs of life,” said Barry Schwartz, vice-president and portfolio manager at Baskin Financial Services.
At 10:48 a.m. (1448 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 24.10 points, or 0.21 percent, to 11,567.57, with four of its 10 main groups higher.
Also helping to keep the index afloat was a rebound in oil prices, which lifted energy shares 0.4 percent. Suncor Energy (SU.TO) climbed 0.7 percent to C$32.77. [O/R]
Financials weighed to the downside, with Royal Bank of Canada (RY.TO) off 0.5 percent at C$53.39, in line with weakness in U.S. banks, after Goldman Sachs Group (GS.N) posted lower quarterly earnings. [ID:nN19184420]
Other disappointing U.S. results included International Business Machines Corp (IBM.N) and Texas Instruments Inc TXN.N.
“The market is trying to assess the impact of what happened with the European debt crisis and the global slowdown on corporate profitability so that’s really what the earnings season is telling us,” said Jean-Francois Dion, vice-president and portfolio advisor at RBC Dominion Securities.
“So far, the comments from management kind of suggest that the impact is starting to be felt already.”
Elsewhere, the Bank of Canada raised its key interest rate, as expected, but cautioned that the domestic and global economic recovery would be slower than previously expected. [ID:nN20251478]
After the rate announcement, the Canadian dollar fell slightly against its U.S. counterpart. [CAD/]
“It was a little more dovish than we expected, but I’d say overall it was fairly close to expectations,” Dion said.
“We still think the Canadian market is driven much more by what happens globally.”
$1=$1.06 Canadian Reporting by Jennifer Kwan; editing by Rob Wilson