Financial stocks helped Toronto markets regain most of their previous-day losses Wednesday, but U.S. market increases were unimpressive given the decline the day before.

At close Wednesday, the S&P/TSX composite index was up 35.22 points or 0.37% at 9675.69 while the TSX Venture Exchange slipped 4.66 points or 0.24% to 1951.4. On Wall Street, the Dow industrial average climbed 62.59 points or 0.59% at 10673.79. The Nasdaq was ahead by 0.93 of a point or 0.05% at 2031.25 and the S&P 500 index had added 6.58 points or 0.56% to 1190.8.

The Canadian dollar fell back sharply, losing 1.09¢ to US80.55¢ in late trading as the U.S. dollar bounced back from Tuesday’s slide. Canadian investors were also waiting for a new federal budget later in the day. Indeed, the C$ sold off partly on speculation the budget, handed down at at 4 p.m. ET, could include plans to raise the foreign content ceiling on tax-sheltered retirement investments, from the current 30% to about 40%.

On the TSX, gains came mostly from financial shares (up 0.49%), while gold stocks (up 0.43%) and energy issues (up 0.53%) also boosted the market.

In New York, market’s cautious optimism was restored by government data showing only modest inflation, better-than-expected corporate earnings, announcements of two merger deals and the report of a third.