TSX rallies more than 1 percent, resources lead way

TORONTO (Reuters) - Canada's main stock index rallied more than 1 percent on Tuesday with market sentiment buoyed by stronger-than-expected U.S. earnings and firmer commodity prices.

Mining and energy stocks were up 1.75 percent and 1.18 percent, respectively, as gold and copper prices came off one-month lows and oil prices edged higher. The index's materials group, home to miners, was up 1.73 percent.

Barrick Gold was the biggest index mover, up 2.05 percent at C$38.76, while Suncor Energy climbed 1.3 percent to C$32.80. Miner Goldcorp gained 1.57 percent to C$43.24.

Royal Bank of Canada and Toronto-Dominion Bank completed the top five index movers, with RBC up 0.98 percent at C$57.80 and TD advancing 1.02 percent to C$82.28. The overall financial group was up 0.89 percent.

The financial, energy and materials groups make up roughly three quarters of the index.

The market tracked global shares, which rose for a second day as better-than-expected earnings from U.S. corporate bellwethers Johnson & Johnson and Goldman Sachs Group helped alleviate some concerns about a slowing global economy.

"Things have just been a bit more buoyant. The mood seems to be improving...so confidence is improving, generally," said Douglas Davis, chief executive at Davis-Rea.

The Toronto Stock Exchange's S&P/TSX composite index <.gsptse> was up 137.85 points, or 1.13 percent, at 12,367.81. All 10 key sectors of the index climbed.

Data on Tuesday showed Canadian factory sales bounced back in August with an unexpected 1.5 percent jump after a two-month slump and that foreign investors increased their purchases of Canadian securities in August to C$6.90 billion ($7.04 billion) from C$6.67 billion in the previous month.

"Recently some of the data that's come out has been a bit more supportive of the recovery as opposed to data that makes you question whether or not we're recovering at the rate that we'd hope," said Gareth Watson, vice president at Richardson GMP.

In corporate news, Loblaw Cos Ltd , Canada's largest grocer, said on Tuesday that it planned to cut about 700 head office and administrative jobs over the next three weeks in a move aimed at reducing costs. Its shares climbed 2.33 percent to C$34.67.

($1=$0.99 Canadian)

(Editing by Peter Galloway)

Source: http://news.yahoo.com/tsx-may-open-higher-u-results-ease-worries-125131632--sector.html

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