Financial stocks came to the rescue of Toronto markets on Monday, while U.S. markets posted a triple-digit rally after losing 2% last week.

At close, the Standard & Poor’s/TSX Composite Index was up 44.83 points or 0.48% to 9323.28, while the TSX Venture Exchange slipped 35.33 points or 2.16% to 1597.81.

In New York, the Dow Jones industrial average added 112.17 points or 1.11% to 101252. 29. Broader stock indicators were modestly higher. The Standard & Poor’s 500 index was up 11.64 or 1.01% at 1165.69, and the Nasdaq composite index gained 17.65 or 0.89% to 1994.43.

Canada’s dollar fell to a seven-month low at US78.76¢ in Toronto, off 0.27 of a cent from Friday. Demand for Canada’s currency waned before reports this week forecast to show retail sales dropped and foreigners slowed their purchases of Canadian securities in March. Government reports last week showed factory shipments fell that month and the trade surplus remained at the smallest since December 2002 for a second straight month.

The lower dollar is also a response to a vote in Parliament this week that may determine whether Prime Minister Paul Martin’s 10-month-old minority government will topple and send Canadians back to the polls.

On Bay Street, Canadian stocks turned around after languishing in the morning session because of falling commodity prices. But financial shares pushed markets higher as they piggybacked on advances by their U.S. counterparts on easing concern that the Federal Reserves will step up its pace of interest-rate increases.

The Fed’s Bank of New York’s index, which gives a clue to the current performance of U.S. industry, Monday dropped to minus 11.1, ending two years of growth and easing worries that the central bank may get more aggressive-than-expected to fight inflation.

The TSX financial subgroup added 0.93% with Power Financial Corp. up 60¢ or 1.86% to $32.90, while Manulife Financial Corp. added 94¢ or 1.65% to $57.93.

Energy-related stocks fell 0.37% as oil prices declined to the lowest in almost three months and natural gas prices dropped. Gold stocks were down 0.93% as gold prices dipped as well.

In New York, U.S. stocks saw the pace of gains pick up in the final half-hour of trading Monday as investors sought out bargains, with Home Depot a notable gainer, buoyed by results from rival Lowe’s Cos.

Within the Dow industrials, Home Depot was the biggest percentage gainer, up $1.08 or 2.98% at US$37.37 in the wake of rival Lowe’s Cos. first quarter earnings.