The S&P/TSX composite index jumped 95.93 points to 14,856.2, while the Canadian dollar surged 0.45 of a cent to 88.37 cents US.
New York markets were narrowly mixed as the Dow Jones industrials was off 2.7 points at 17,612.2, the Nasdaq gained 14.57 points to 4,675.13 and the S&P 500 index slipped 1.43 points to 2,038.25.
The energy sector in Toronto rose one per cent even as oil prices headed lower ahead of the latest U.S. inventory data. The December crude oil contract dropped 76 cents to a four-year low of US$77.18 a barrel.
Oil prices have fallen dramatically from around US$105 at mid-summer amid uncertainty about global economic growth and higher crude supplies, and there is plenty of doubt about where prices go from here.
"I think flat to down," said Brian Belski, chief investment strategist at BMO Nesbitt Burns.
"I still think there’s a tug of war in terms of how global growth is going to work in the next year or two and what it means for the commodity structure — especially energy."
There was another reminder of global economic weakness after the German government's independent panel of economic advisers forecast growth of just one per cent next year. The panel also cut its 2014 growth forecast for Europe's biggest economy to 1.2 per cent from its 1.9 per cent prediction in March. The government recently forecast growth of 1.2 per cent this year and 1.3 per cent next year.
The advisers pointed to "geopolitical risks" such as the Ukraine crisis and weak eurozone growth.
Encana Corp. (TSX:ECA) posted operating earnings of $281 million or 38 cents a share, missing estimates of 50 cents a share. Encana did better than estimates on cash flow, which increased to $1.09 per share from 89 cents per share and eight cents above the estimate of $1.01 per share and its stock shed 35 cents to $20.58.
Elsewhere, Loblaw Companies Ltd. (TSX:L) reported adjusted earnings of $371 million or 90 cents a share, up 23 per cent from a year ago and three cents ahead of estimates. Revenue shot up 36 per cent to $13.6 billion, reflecting its acquisition of Shoppers Drug Mart. Loblaw shares gained $1.98 or 3.4 per cent to $60.10.
Yellow Media Ltd. (TSX:Y) shares surged $2.10 or 13.1 per cent to $18.10 as the company posted quarterly earnings of $26.5 million or 98 cents per share compared with $41.8 million or $1.51 per share a year ago. Total revenue declined eight per cent to $218.4 million but revenue from digital products was up and now represents more than half of the total.
The base metals group rose 1.85 per cent while the December copper contract was down a cent at US$3.02 a pound.
The gold sector dipped about 0.15 per cent as December bullion closed down $3.90 to US$1,159.10 an ounce. Gold stocks have been volatile this week as traders consider whether sector has been oversold. It is down 13 per cent in the last month alone as gold prices head steadily towards the US$1,100 mark amid a higher U.S. dollar, improved economic data from the U.S. and the ending of the Federal Reserve's bond buying stimulus program.