Closing Bell TSX surges 172 points in broadbased rally

TORONTO • The Toronto Stock Market registered a solid advance Tuesday as resource stocks led a rebound across all sectors after a string of losses amid global economic uncertainty.Here are the closing numbersTSX — 11507.71 +171.94 1.52%S&P 500 — 1285.50 +7.32 0.57%Dow — 12127.95 +26.49 0.22%Nasdaq — 2778.11 +18.10 0.66%The S&P/TSX composite index jumped 171.94 points to 11,507.71 while the TSX Venture Exchange gained 7.02 points to 1,285.57.The Canadian dollar gained US0.16¢ to US96.34¢ as the Bank of Canada said that it was leaving its key interest rate unchanged at 1% because of a worsening economic environment. It also kept the door open for future rate hikes.In its accompanying statement, Canada’s central bank said “to the extent that the economic expansion continues and the current excess supply in the economy is gradually absorbed, some modest withdrawal of the present considerable monetary policy stimulus may become appropriate.”Data showing greater expansion in the U.S. service sector helped lift markets.New York’s Dow Jones industrial average was up 26.49 points to 12,127.95.The Nasdaq composite index added 18.1 points to 2,778.11 and the S&P 500 index climbed 7.32 points to 1,285.5 as the Institute for Supply Management’s non-manufacturing index came in at 53.7, up from 53.5 in April.The gain followed a slide of almost 2% last week as the European debt crisis spread to Spain’s banking sector.The country’s banks are weighed by toxic loans following the implosion of the country’s real estate sector in the wake of the 2008 financial collapse.Spain’s most stricken lender, Bankia SA, needs ¤19-billion in government aid, but Spain only has ¤5-billion left in a ¤19-billion fund that it established in 2009 to help banks.Those banks may force the country to seek a bailout. Spain, strapped for cash, might have to tap European Union rescue funds, but it is reluctant to do so because such aid would come with strict conditions.Spain has been forced to pay ever higher amounts of interest to attract buyers for its debt with the yield on the country’s 10-year bond up 0.02 of a point to 6.42% before dipping back to 6.31%.Spanish Treasury Minister Cristobal Montoro said Tuesday said that, given current borrowing costs, financial markets had effectively shut out the country.And he repeated the country’s calls for the European Union to move faster towards establishing a banking union that would allow ailing lenders to seek help without governments intervening.Meanwhile, finance ministers and central bank governors from seven of the world’s main economies were holding a conference call Tuesday to discuss Europe’s worsening debt crisis.Canadian Finance Minister Jim Flaherty and Bank of Canada governor Mark Carney took part in the call.And although Mr. Flaherty’s office in Ottawa released a statement, it did not provide details of any pledge from European leaders.However, Japanese Finance Minister Jun Azumi reportedly said that the European members in the call pledged to “speed up their efforts” to contain the crisis.The energy sector was up almost 2.5% as oil oscillated between slight gains and losses during the session before the July crude contract on the New York Mercantile Exchange closed up US31¢ to US$84.29 a barrel. Suncor Energy Inc. was ahead US59¢ to $28.30 while Cenovus Energy Inc. advanced 36¢ to $30.88.The base metals sector was ahead 1.4% while copper prices dipped US2¢ at US$3.29 a pound. Teck Resources Ltd. climbed 92¢, or 3%,to $31.41 and Ivanhoe Mines Ltd. climbed 46¢ to $10.14.The resource sectors have racked up the steepest losses on the TSX, which is down about 10% from its 2012 highs from late February.The financial sector was up 1.3% with Toronto-Dominion Bank ahead $1.18 to $77.68 and Manulife Financial Corp. up 19¢ to $10.77.Utilities were also higher as TransCanada Corp. said it has been chosen by Shell Canada Ltd. to build, own and operate a $4-billion natural gas pipeline in British Columbia. The Calgary-based company said the pipeline will transport natural gas from the Montney region in eastern British Columbia to a liquefied natural gas export facility near Kitimat, B.C. Its shares gained 33¢ to $42.48.The gold sector was ahead about 0.8% as bullion prices improved, up $3 to US$1,616.90 an ounce. Iamgold Corp. gained 54¢ to $12.68 while Goldcorp Inc. rose 63¢ to $41.78.Here’s the news investors were watching today:What you need to know about the Bank of Canada’s decision to hold ratesG7 takes no action as Spain issues desperate pleaTransCanada to build $4B pipeline to export natural gasCanada to be among top three oil producers by 2030: CAPPON DECK WEDNESDAYECONOMIC NEWSEuropean Central Bank announces interest rate decision UNITED STATES8:30 a.m.Productivity (Q1): Economists expect a decline of 0.7% 2 p.m.Beige Book: U.S. Federal Reserve’s summary of economic conditions in its 12 districts CORPORATE NEWSCANADACanadian Western Bank Q2 earnings: Analysts expect 55¢ a share Transcontinental Inc Q2 earnings: Analysts expect 47¢

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