July 26, 2010 / 2:54 PM / 9 years ago

CANADA STOCKS-TSX flat as weak golds offset positive sentiment

* TSX up 7.14 points at 11,721.35

* Seven of 10 sectors higher (Adds details, comments)

By Claire Sibonney

TORONTO, July 26 (Reuters) - Toronto’s main stock index was little changed on Monday morning as strong U.S. earnings and economic data boosted investor optimism, but gains were capped by a sharp decline in gold-mining issues.

The market mood was buoyed by U.S. data showing sales of new single-family homes rebounded strongly in June from the prior month’s record low. [ID:nN23137243]

“We didn’t move that much on it but we’re making a one-month high in the S&P500, so that’s a positive,” said Francis Campeau, broker at MF Global Canada.

Economically sensitive financial issues gained 0.5 percent, with Bank of Montreal (BMO.TO) rising 1.4 percent to C$62.63 and Toronto-Dominion Bank (TD.TO) adding 0.6 percent to C$72.34.

The home sales data also helped oil prices turn positive, driving the TSX’s powerhouse energy stocks 0.5 percent higher.

Suncor Energy (SU.TO) was up 0.4 percent at C$33.51 and Canadian Oil Sands Trust COS_u.TO rose 1.4 percent to C$29.39.

At 10:24 a.m. (1424 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 7.14 points at 11,721.35. Seven of the 10 sectors were higher

Markets also got a lift from FedEx Corp (FDX.N) after the bellwether company raised its earnings outlook, citing strong volume growth. [ID:nN26199061]

“Positive earnings out of FedEx which could be seen as a leading indicator or good proxy of the U.S. economy,” said Campeau.

“We’re looking at 84 to 85 percent of S&P 500 names releasing a positive surprise — that’s a positive,” he added.

“Canada’s a bit lagging, perhaps on the strong U.S. dollar and the weak gold. Nonetheless market sentiment quietly improved.”

Gold softened, losing some of its safe-haven appeal after a European banks stress test showed no nasty surprises. Gold mining stocks were down 1.4 percent with spot gold around $1,187. [GOL/]

Barrick Gold Corp (ABX.TO) slipped 1.1 percent to C$43.40, while Goldcorp Inc (G.TO) lost 1.2 percent to C$41.75.

Also among the heaviest decliners, Research In Motion RIM.TO slid 1.4 percent to C$56.87 after the United Arab Emirates said the BlackBerry is open to misuse that poses security risks. [ID:nLDE66O07I]

$1=$1.03 Canadian Reporting by Claire Sibonney; editing by Rob Wilson

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