European Markets

TSX rallies as dividend increases help underpin financial shares

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  • TSX ends up 297.43 points, or 1.45%, at 20,762.03
  • All 11 major sectors end higher
  • Financials advance 2.2%; energy up 1.8%
  • Toronto-Dominion Bank ends 4.9% higher

TORONTO, Dec 2 (Reuters) - Canada's main stock index rebounded on Thursday from a seven-week low hit in the previous session, with financials contributing to broad-based gains as major lenders boosted their dividends.

The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) ended up 297.43 points, or 1.45%, at 20,762.03, after posting on Wednesday its lowest close since Oct. 12.

Wall Street also rallied as market participants snapped up bargains while digesting the implications of a shifting pandemic. The Omicron variant has spooked investors for about a week. read more

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"The market is awaiting confirmation on the severity of the new COVID-19 variant, the degree to which it escapes existing vaccines, and how infectious it is given this will likely dictate the global response in terms of restrictions," said Russ Mould, investment director at AJ Bell.

Financials, which account for about 30% of the Toronto market's value, gained 2.2%. Toronto-Dominion Bank (TD.TO) and Canadian Imperial Bank of Commerce (CM.TO) joined rivals in announcing higher dividends and share repurchases. read more

TD rose 4.9%, while CIBC ended down 2.8% after missing profit estimates as costs climbed.

All 11 major sectors ended higher.

The energy sector advanced 1.8% as oil prices rebounded after OPEC+ stuck to its policy of incrementally boosting output. U.S. crude oil futures settled 1.4% higher at $66.50 a barrel.

Consumer cyclical stocks gained 2.4%, helped by gains for Restaurant Brands International Inc (QSR.TO) and Magna International Inc (MG.TO).

Canadian Prime Minister Justin Trudeau's government will outline limited new spending in a fiscal update to be released later this month, a source said, as inflation soars and some business groups and opposition politicians call for restraint. read more

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Reporting by Fergal Smith; Additional reporting by Amal S in Bengaluru; Editing by Peter Cooney

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