TORONTO (Reuters) - Toronto's main stock index ended a six-session losing streak yesterday, led by resources and bank shares, as some positive developments in Europe and recent price declines helped spur investor buying.

The resource-heavy index fought back from a 14-week low touched earlier yesterday, led higher by a 1.7 percent rise in the hefty energy sector, while materials moved up by 0.7 percent. Financials climbed 0.9 percent.

"We were due for a short-term trading bounce," said John Johnston, chief strategist for Harbour Group at RBC Dominion Securities.

"The sell-off was getting extended, which means in the short term maybe the bad news was getting a little over-discounted," he said.

Key stocks on the upside included Teck Resources , which rose 5.6 percent to C$33.75, while Suncor Energy rose 2.4 percent to C$31.19.

Talisman Energy was up 2.7 percent at C$17.40, and First Quantum Minerals advanced 3.9 percent to C$62.79. Banks Toronto-Dominion Bank gained 1.7 percent to C$71.50 and Bank of Nova Scotia rose 1 percent to C$49.50.

The Toronto Stock Exchange's S&P/TSX composite index was up 115.40 points, or 1.01 percent, at 11,521.35, with the majority of its 10 main sectors lower. Earlier, the index sank to 11,179.97, its lowest level since February 9.

Despite Friday's rally, the TSX was down 4 percent for the week as investor sentiment was beaten down by concern austerity measures in some euro zone countries would hurt European and global growth.

But confidence in the market edged higher yesterday after the head of the European Central Bank said the euro was not in danger, while German lawmakers backed a $1 trillion rescue plan for the euro zone, alleviating some of the concerns over sovereign debt levels and prospects for economic recovery.

Market strategists also pointed to relatively strong Canadian fundamentals.

Paul Gardner, partner & portfolio manager at Avenue Investment Management, said while recent European developments have clouded the mood on the markets, the North American economy has fared better, particularly Canada where "the consumer is alive and well". The rally was supported by data that showed Canadian inflation was higher than expected in April, while retail sales in March soared from February.