U.S. Markets eked out gains on Tuesday following a stronger than expected December U.S. retail sales report, which showed only a 0.1% decline.

Economists had been predicting a drop of about 1.2%. The strength of the report was due almost entirely to automobile sales.

The TSE 300 composite index jumped 20.6 points to 7,643.9, following action by the Bank of Canada cut the key overnight rate 25 basis points to 2%.

After 10 cuts in the last year, the overnight rate is down to the lowest level since 1960.

Overall, 10 of the TSE’s 14 sub-indices closed higher. finished the session higher, led by a 0.98% jump in oil and gas stocks.

Talisman Energy climbed $1.29 to close at $56.00, while Shell Canada jumped $1.01 to $45..

Gold stocks rallied late in the session, climbing 1.65%. Agnico-Eagle gained 82 cents to finish at $17.85.

Following this morning’s announcement on interest rates, the banks quickly moved to lower their prime lending rate by a quarter-point to 3.75%.

The Canadian dollar was up sharply on the day. The loonie closed almost a third of a cent to US62.94.

The S&P/CDNX Composite index closed down 5.94 at 1.088.13. Trading was heavy on a volume of 39.8 million shares, with 181 advances, 233 declines and 579 issues unchanged.

On Wall Street, stocks rallied in the final minutes of trading Tuesday, allowing the major averages to end a volatile session with gains.

The Nasdaq composite index closed above the 2000 mark, adding 10.17 points to 2,000.91. The Dow Jones industrial average gained 32.73 points to 9,924.15, and the S&P 500 was up 7.78 points at 1,146.19.