TSX rises 1.55 percent to 10,825.56

TSX rises 1.55 percent to 10,825.56

* Mining, energy, industrials lead broad rally

* Surprise European growth helps sentiment

TORONTO, Aug 13 (Reuters) - Toronto's main stock index rose
sharply on Thursday as surprisingly strong European economic
data buoyed sentiment and commodity prices, sparking a
resource-led rally.

Reports showing recessions in Germany and France ended in
the second quarter overshadowed disappointing U.S. retail sales
and weekly jobless claims data, and allowed investors to become
increasingly more comfortable with risk in their portfolios.

Copper rallied to a 10-month peak on the strong sentiment
and gold rose on concerns about inflation, boosting the TSX
index's materials sector by 2.84 percent. Energy issues gained
1.88 percent as oil also ended higher.

"It does seem as though it's the premise that the North
American and global economies are strengthening," said Elvis
Picardo, analyst and strategist at Global Securities in
Vancouver.

"It's a good rally on the back of that sentiment."

Among materials issues, Pan American Silver jumped
10.4 percent to C$22.53, and copper and gold producer Quadra
Mining rose 7 percent to C$12.51.

Among oil and gas producers, Talisman Energy
gained 3.7 percent to C$17.55, while Nexen jumped 3.6
percent to C$23.41.

Altogether, the Toronto Stock Exchange's S&P/TSX index
climbed 165.69 points, or 1.55 percent, to end at 10,825.56.

($1=$1.09 Canadian)
(Reporting by Cameron French; editing by Peter Galloway)