Financials lead TSX to one-month high on German data

TORONTO (Reuters) - Toronto's main stock index hit a one-month high on Tuesday, led higher by financial and energy stocks after positive German economic data encouraged the market.

Gauges of German analyst and investor morale rose sharply in December, fueling hopes that Europe's largest economy will avoid recession this winter.

"It shows that there is some prospect that the European economy may be starting to gain a little bit of traction. It's better than the numbers we've been seeing," said Rick Hutcheon, president and chief operating officer at RKH Investments.

Hutcheon said Canadian economic data was also encouraging. A Statistics Canada report showed the country's trade deficit unexpectedly shrank in October as imports fell to a 15-month low while exports increased.

At midmorning, the Toronto Stock Exchange's S&P/TSX composite index <.gsptse> was up 73.00 points, or 0.60 percent, at 12,303.33. Earlier in the session it hit 12,304.36, its highest point since November 7.

All 10 main sectors on the index were higher.

Shares in Research In Motion rose more than 5 percent to C$12.35 after Cormark Securities raised its price target on the stock to $16 from $12, citing an improving outlook for the embattled BlackBerry maker.

The financial sector, the index's biggest, rose 0.8 percent, playing the biggest role of any single sector in leading the market higher.

Royal Bank of Canada gained 0.7 percent to C$58.94, Bank of Nova Scotia was up 1.2 percent at C$56.59, and Toronto-Dominion Bank added 0.6 percent to C$80.72.

The energy sector climbed 0.4 percent, helped by higher oil prices. In the group, Canadian Natural Resources Ltd rose 0.8 percent to C$28.25.

In other news, patent licensing company Wi-LAN Inc said it filed a lawsuit against RIM for infringing on a patent related to bluetooth technology. Wi-LAN shares rose 2 percent to C$4.99.

($1=$0.99 Canadian)

(Editing by James Dalgleish; and Peter Galloway)

Source: http://news.yahoo.com/tsx-may-open-higher-buoyed-german-data-135117602--finance.html

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