* TSX gains 0.45 percent to 11,705.49
* U.S. Q2 growth revised down to 1.6 pct pace
* All 10 sectors gain ahead of Bernanke speech (Adds details)
TORONTO, Aug 27 (Reuters) - Toronto’s main stock index was firmer on Friday morning, helped by a report that showed U.S. second quarter growth was was better than anticipated, though revised lower.
U.S. second quarter GDP was revised lower to an annual rate of 1.6 percent versus expectations of 1.4 percent. [ID:nN26193565]
The relief was felt across all 10 sectors of Toronto’s main stock index, led by the hefty financials, up 0.7 percent, which are often a play on the broader economy. Markets have been mulling the possibility of a double-dip recession, sending riskier assets lower in recent weeks.
“The markets have been most worried about the possibility of another recession and another slowdown. Seeing the GDP number where it was helps put a little bit of confidence back into the market here,” said Michael Sprung, president at Sprung & Co. Investment Counsel
“Also we’re partially responding to some of the selloff we’ve seen as well. We’re getting a bit of a swing the other direction.”
But all eyes are on U.S. Federal Reserve Chairman Ben Bernanke, who is expected to shed light on whether the U.S. central bank will support the economy with fresh injections of cash and that the U.S. economy is facing uncertain prospects. [ID:nN27251934]
“We’re looking for him to give some confidence that the U.S. economy will not slip into recession or to outline what actions he might be able to take to assist the economy from slipping into recession,” said Sprung.
At 9:50 a.m. (1350 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE gained 52.31 points, or 0.45 percent, to 11,705.49.
Key gainers included Royal Bank of Canada (RY.TO), up 1.1 percent to C$49.48, recovering some of the losses of the previous session after it had reported disappointing quarterly results.
Takeover target Potash Corp (POT.TO) (POT.N) was up 0.85 percent at C$154.65 as its bidder BHP Billiton’s chief executive was expectedt to fly to North America this week to mount a charm offensive to woo the fertlizer company’s shareholders. [ID:nN26228720]
Research In Motion RIM.TO RIMM.O was 1.5 percent lower at C$48.71 as India insisted on Friday it would block some BlackBerry services next week if the smartphone maker did not address security concerns, and government officials said they were hopeful for a solution soon. [ID:nLDE67Q1B5]
Reporting by Ka Yan Ng and Jennifer Kwan