CANADA STOCKS-TSX hits 1-week high as commodities climb
(Updates to late morning)
* TSX up 81.23 points, or 0.7 percent, at 12,398.69
* All 10 sectors stronger By Claire Sibonney
TORONTO, Oct 1 (Reuters) - Canada's main stock index hit its highest level in more than a week on Monday, starting the new quarter on positive ground as U.S. economic data surprised to the upside and investors bet on continued support from central banks.
The TSX's resource sectors were all higher as commodity prices gained. Energy shares climbed up 1.1 percent as oil reversed early losses while materials, home to miners, were up percent as the price of gold in euros rose to a record high.
Suncor Energy was up 1.4 percent to C$32.79, Agnico Eagle advanced 1.1 percent to C$51.55, and First Quantum Minerals rose 2.2 percent to C$21.40.
"Commodities are benefiting from QE (quantitative easing) comments essentially, very dovish central bankers," said Francois Bourdon, associate chief investment officer at Fiera Capital Corp in Montreal.
Chicago Federal Reserve President Charles Evans, a big booster of the U.S. central bank's policy easing move last month, said on Monday the Fed can be even more explicit about what economic conditions will influence its future decisions.
Meanwhile, data showed U.S. manufacturing grew slightly last month for the first time since May but euro zone factories suffered their worst quarter since early 2009, suggesting the region may struggle to avoid recession.
Factory activity in China also contracted, suggesting the world's No. 2 economy lost momentum for a seventh consecutive quarter, and boosting hopes for more stimulus there.
At 10:55 a.m. (1455 GMT) The Toronto Stock Exchange's S&P/TSX composite index
was up 81.23 points, or 0.7 percent, at 12,398.69. All 10 sectors were stronger, including financials, up 0.6 percent.
"It's the start of the month so there's money that needs to be employed," added Bourdon.
On Friday, the commodity-rich index closed out the third quarter with a gain of more than 6 percent, as energy companies and miners benefited from a strong showing in crude and bullion prices.
In company news, Magna International Inc
, one of the world's biggest auto parts manufacturers, jumped 2.4 percent to C$43.51 after it will buy Germany-based Ixetic for about 308 million euros to expand its engine and transmission pumps business.
rose 1.5 percent to C$48.36 after announcing plans to invest C$210 million to boost recoveries of ethane and other high-margin natural gas liquids at the Rimbey gas plant in west central Alberta.
(Editing by James Dalgleish)
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