July 22, 2010 / 8:46 PM / 9 years ago

CANADA STOCKS-TSX rallies on strong U.S. earnings, commodities

* TSX up 154.43 points, or 1.34 percent, at 11,667.76

* Resources lead index higher

* Eight of 10 sectors gain; utilities, healthcare down (Updates to close, adds quote)

By Jennifer Kwan

TORONTO, July 22 (Reuters) - Canada’s main stock index surged to its highest close in a week on Thursday, as strong U.S. corporate earnings and buoyant commodity prices eased investor concerns about the health of the economic recovery.

North American stock markets soared on impressive results from Caterpillar (CAT.N), UPS (UPS.N) and 3M (MMM.N), recovering from Wednesday’s hefty retreat, which followed a gloomy outlook from U.S. Federal Reserve Chairman Ben Bernanke. [ID:nN21182792] [.N]

Stronger oil and metals prices also helped support the resource-heavy TSX’s move higher, with crude futures ending at an 11-week high above $79. [O/R] [MET/L]

The TSX’s key financials, energy and materials sectors all rallied, with Royal Bank of Canada (RY.TO) up 1 percent at C$52.00, Suncor Energy (SU.TO) ahead 2.7 percent at C$33.41 and Teck Resources TCKb.TO, climbing 3.6 percent to C$36.42.

“We had some really good quarterly earnings numbers reported by some of the U.S. companies. I think that gave some boost to the U.S. market. The U.S. market always affects the Canadian market to some degree,” said Tim Burt, president and chief investment officer at Cardinal Capital Management Inc in Winnipeg, Manitoba.

The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed up 154.43 points, or 1.34 percent, at 11,667.76, with eight of its 10 main sectors higher. Utilities fell 0.1 percent, while healthcare shares were down 0.2 percent.

Thursday’s rebound came despite the Bank of Canada’s cautious economic assessment. Speaking two days after the bank nudged interest rates higher for the second time in six weeks, Governor Mark Carney said he shared the view of the U.S. Federal Reserve that the world economic outlook is unusually uncertain. [ID:nN22208118]

$1=$1.04 Canadian Reporting by Jennifer Kwan; editing by Rob Wilson

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below