CANADA STOCKS-TSX ends at highest level in nearly 3 weeks
(Updates to close)
* TSX ends up 88.21 points, or 0.7 pct, at 12,447.68
* Eight of 10 sectors end higher
By Claire Sibonney
TORONTO, Oct 4 (Reuters) - Canada's main stock index notchedits highest closing level in nearly three weeks on Thursdayafter reassuring comments from the European Central Bank chiefand signs of improvement in the U.S. labor market supporteddemand for riskier assets.
Heavily-weighted financial and resource shares rose sharply,with the latter helped by higher prices for the underlyingcommodities.
Oil prices were up about 4 percent, getting an extra boostfrom inflamed tensions between Turkey and Syria, while gold hitits highest level in 11 months.
Among the top gainers, Royal Bank of Canada
rose 0.9percent to C$57.53, Barrick Goldjumped 1.8 percent toC$41.36 and Suncor Energyadded 1.3 percent to C$33.15.
"Today we got the big run-up in crude oil, so that'ssupported the energy sector ... but I think for cyclical stocks,folks may be looking for greater visibility that growth in Chinais picking up," said Fergal Smith, managing market strategist atAction Economics.
The TSX's slant towards economically sensitive commoditycompanies - which make up about half of the index - has causedthe index to dramatically lag Wall Street in 2012. The TSX is upabout 4 percent year to date, versus a 16 percent rise for theS&P 500.
The Toronto Stock Exchange's S&P/TSX composite index
ended up 88.21 points, or 0.7 percent, to 12,447.68.Eight of the 10 sectors were positive.
Lifting sentiment, ECB President Mario Draghi said thecentral is ready to buy the bonds of euro zone member countriesthat ask for it, leaving the door open to a widely expectedbailout of Spain.
"Draghi has shown that he's someone you don't want to messwith and the market needs to understand that he's going to dowhatever it takes to ensure that the euro survives," said BarrySchwartz vice president and portfolio manager at BaskinFinancial Services.
The euro zone is also considering aiding Spain by providinginsurance for investors who buy government bonds in a movedesigned to maintain Spanish access to capital markets andminimize the cost to European taxpayers, European sources said.
On the data front, fewer than expected Americans filed newclaims for unemployment benefits last week, setting upexpectations for a decent U.S. monthly jobs report on Friday.
U.S. employers are expected to have added 113,000 jobs totheir payrolls in September, an increase from 96,000 in August,according to a Reuters survey of economists.
(Reporting by Claire Sibonney)
((claire.sibonney@thomsonreuters.com)(+1 416 941 8142)(ReutersMessaging: claire.sibonney.reuters.com@reuters.net))
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