Late Rally Turns Around TSX, Lifted by Renewed Hopes of Euro-Zone Debt Fix
Stocks turned around a day-long slump, with the S&P/TSX Composite Index surging nearly 280 points less than an hour before the close to finish down about 74 points at 11,177.91.
The Wall Street Journal appears to have lit the fire, reporting that French-Belgian investment bank Dexia will create a "bad bank" to park EUR180 billion in troubled assets, possibly part of a larger plan to dismantle the European public-debt specialist in a bid to contain ongoing contagion fears.
France and Belgium will initially back the bad bank with guarantees, looking to eventually take over its ownership.
Base metal mining companies, including Inmet (IMN.TO) and First Quantum Minerals (FM.TO) paced the rally among Canadian stocks, resisting falling commodity prices, to rise as much as 10%. Industrial, technology and consumer discretionary stocks all gained as well as the Dow Jones Index also rallied late, setting off a buying spree for several sectors.
Energy companies also rebounded, finishing just above even for the session. Gold and other precious-metal miners missed out, however, sliding over 3%.
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