TORONTO (Reuters) - Toronto's main stock index rallied into the close yesterday with all 10 of its main sectors ending in positive territory as worries about the economic recovery gave way to hopes of increased momentum from healthy corporate earnings.

The broader market was little changed for much of the session, caught in a tug of war between positive sentiment over forecast-topping profits at US bank JPMorgan versus a raft of weak US economic data that renewed concern about the strength of the recovery.

But Toronto's main market turned around as US stocks recouped losses late in the day, led by a surge in Goldman Sachs Group on talk that US securities regulators will make a major enforcement announcement.

The Toronto Stock Exchange's S&P/TSX composite index finished at its high for the session, up 121.61 points, or 1.05 percent, at 11,741.77. That is also the highest level since June 24.

"Today, many traders thought this was an opportunity to buy stocks a bit more cheaply in the face of what are likely to be stronger than expected earnings over the next week or so, on both sides of the border," said Kate Warne, Canadian market strategist at Edward Jones in St. Louis, Missouri.

All 10 of the TSX's major sectors finished higher, with four groups rising more than one percent, including the hefty financial group.

Key names on rise included Toronto Dominion Bank, up 1.1 percent at C$72.88, while Royal Bank of Canada gained 0.81 percent to C$55. Bank of Nova Scotia advanced 1.04 percent to C$52.44.

Nexen rose 4.4 percent to C$22.32 after the independent oil company reported a market-beating quarterly profit, driven by higher oil and gas prices.

The Canadian dollar touched its lowest level in nearly a week against the greenback yesterday, hit by US data that fuelled worries about the economic health of Canada's biggest trading partner.

Investor sentiment soured after a gauge of factory activity in New York state fell sharply and a third monthly drop in wholesale prices in June fueled worries about deflation.