RTTNews - Mining and energy stocks have led Toronto's main index toward its highest closing since in more than eight months. The Bay Street market has followed the lead of U.S. and European stocks.

The S&P/TSX Composite Index has added 111.35 points or 1.05% to 10,709.32. The reached its highest intraday level since October 6.

The Mining Index has added 4.4%, adding to its recent gains. First Quantum (FM.TO) is up 4.5%, Teck Cominco (TCK.B.TO) has added 3.3% and HudBay (HBM.TO) is up 3.2%.

Crude oil prices have added 2% as crude oil is up $1.32 to $72.65 after earlier hitting as high as $73.23. Baytex Energy Trust (BTE.UN.TO) is up 3.4%, Canadian Oil Sands (COS.UN.TO) has added 3.1%, Canadian Natural Resources (CNQ.TO) is up 2.6% and Encana (ECA.TO) has added 1.7%.

TransCanada Corp. (TRP.TO) is up 1.4% after the company announced that the company and ExxonMobil have reached an agreement to work together on an Alaska gas pipeline.

Tech stocks are up 1.6% as Research in Motion (RIM.TO) is also up 1.6%. The Blackberry maker saw its first quarter and full year estimates increased by JPMorgan Chase & Co. RIM is now expected to earn $0.96 per share in the quarter, up from $0.88, according to Bloomberg. Full-year expectations jumped to $4.06, up from $3.71.

In corporate news, Telus Corp. (T.TO) has gained 0.8% after the telecommunications carrier said it plans to invest more than C$250 million this year in the Quebec province, for advancing its broadband infrastructure. The investment is also expected to support more than 750 jobs.

Bank of Montreal (BMO.TO) announced a definitive agreement to purchase the recordkeeping business of Integra GRS, a wholly owned subsidiary of Integra Capital Management Corp. BMO stock is flat.

Xceed Mortgage Corp. (XMC.TO) has declined 7.1% as the company reported second quarter net income of C$46,000 or breakeven per share, compared to a loss of C$16.67 million or C$0.60 per share in the same quarter of last year. Revenues for the quarter were C$3.76 million, compared to C$4.82 million in the prior year quarter.

lululemon athletica (LLL.TO) has dropped 10.4% after the apparel maker reported first-quarter net income of $6.52 million or $0.09 per share, compared to $8.48 million or $0.12 per share last year.

MDS (MDS.TO) has turned higher and is showing a 1.25% gain. The company reported a second quarter net loss of US$17 million or US$0.15 per share, compared to profit of US$13 million or US$0.11 per share in the year ago quarter.

Transat A.T. (TRZ-A.TO) has climbed 5.9% after the company reported second-quarter net income of C$42.19 million or C$1.27 per share, compared to C$41.72 million or C$1.25 per share last year.

Bank of Canada governor Mark Carney reiterated that he expects interest rates to remain at the current 0.25% until the second quarter of next year. He also called for new rules to help end the global credit crisis.

On the economic front, Statistics Canada reported industries operated at 69.3% of production capacity, down 5.6 percentage points from the previous quarter. It was the first time that industrial capacity use fell below the 70% level since the start of the data series in 1987.

Meanwhile, according to the Globe and Mail, the Ottawa government is planning on providing $1 billion in aide to the forest industry designed. The relief package is designed to help pulp producers combat subsidies from Washington to U.S. rivals, the newspaper said.

Across the border, the U.S. Labor Department revealed that initial jobless claims came in at 601,000 for the week ended at June 6. And a Commerce Department report showed that retail sales rose 0.5 percent in May following a revised 0.2 percent decrease in April.

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