Toronto stocks closed sharply higher on Monday, boosted by record high oil prices and gains in resource issues.

The S&P/TSX composite index closed up 130.92 points, or 0.92%, at 14,427.35.

Seven of the 10 TSX main groups finished higher.

The energy sector gained 0.7%, as the price of oil jumped $1.67 to a record US93.53 a barrel.

Petro Canada was up 78¢, or 1.4%, at $53.87, while Canadian Natural Resources rose $1.51, or 2%, to $78.53.

The materials sector was lifted by news that Barrick Gold will buy Arizona Star Resource Corp. in a cash deal worth $773 million.

Barrick gained 57¢, or 1.4%, to $41.99.

The materials group was up 1.8%, while the gold subsgroup gained 0.9% as spot gold rose as high as US$794.40 an ounce.

On the sessions losers Bombardier shares fell the day after Scandinavian airline SAS grounded its fleet of Q400 turboprops after a third plane crash-landed after a problem with the landing gear.

Bombardier closed down 19¢, or 3.4%, at $5.34.

The junior S&P/TSX Venture composite index rose 59.00 points, or 1.91%, to finish at 3,150.62.

The Canadian dollar closed at US104.90¢ after briefly rising above US105¢. The high flying loonie will undoubtedly get some time when Jim Flaherty delivers the federal government’s fall economic statement on Tuesday.

In New York, U.S. stocks rose on as investors bet that the U.S. Federal Reserve will cut benchmark lending rates this week.

It is widely expected that the Fed will cut its fed funds rate by a quarter-percentage point to 4.5% on Wednesday.

The Dow Jones industrial average was up 63.56 points, or 0.46%, to end at 13,870.26. The S&P 500 was up 5.70 points, or 0.37%, at 1,540.98. The Nasdaq composite index was up 13.25 points, or 0.47%, at 2,817.44.