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CANADA STOCKS-TSX rises with banks; Bombardier falls after tariff hit

Published 2017-09-27, 10:47 a/m
© Reuters.  CANADA STOCKS-TSX rises with banks; Bombardier falls after tariff hit
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* TSX up 39.13 points, or 0.25 percent, at 15,513.25

* Six of the TSX's 10 main groups move higher

TORONTO, Sept 27 (Reuters) - Canada's main stock index rose on Wednesday despite a sharp drop in Bombardier Inc BBDb.TO after the plane and train maker was hit by a steep U.S. tariff, as heavyweight financial stocks moved higher.

The index was at its highest since June.

Bombardier was last down 11 percent at C$2.02 after opening at its lowest point since December 2016 following the U.S. Commerce Department's decision to slap preliminary anti-subsidy duties on its CSeries jets. company also lost out as Siemens AG SIEGn.DE and Alstom SA ALSO.PA agreed to merge their rail operations. Bombardier had also held talks with Siemens, sources have said.

On the positive side, the financials group, which accounts for more than a third of the index's weight, gained 0.6 percent as bond yields broadly rose and Canadian National Railway Co CNR.TO advanced 1.3 percent to C$102.68.

Investors were awaiting a speech by Bank of Canada Governor Stephen Poloz for clues as to how aggressively the bank may tighten rates from here.

At 10:28 a.m. ET (1428 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 39.13 points, or 0.25 percent, at 15,513.25, with six of its 10 main groups in positive territory.

Tahoe Resources fell 8.5 percent to C$6.45 after it said Guatemala's Supreme Court declined to act on renewing its export credential. maker BRP Inc DOO.TO lost 7.5 percent to C$41.79 after announcing a bought deal secondary offering.

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