North American markets ended higher Tuesday, with rising oil prices pushing up the energy sector in Toronto and a U.S. Federal Reserve announcement suggesting an end to currency tightening measures fuelling New York markets.

The S&P/TSX composite index finished up 38.18, or 0.34%, to 11,137.44.

The American central bank raised its key funds rate a quarter point to 4.25% and hinted its streak of rate hikes might be drawing to a close.

Volume on the Toronto Stock Exchange was 309 million shares.

Eight of the 10 TSX main sub-groups were up, with the energy sector gaining 1.61%

Crude-oil futures ended up 7¢ to settle at US$61.37 a barrel, a five-week high. The International Energy Agency predicted that global oil demand growth will recover next year.

Canadian Natural Resources gained $1.84, or 3.15%, to $60.30.

Connacher Oil and Gas Ltd. agreed to purchase Luke Energy Ltd. and its natural gas assets for $203 million in a cash-and-stock deal. Connacher lost 22¢, or 5.53%, to $3.76, while Luke gained 29¢, or 6.44%, to $4.79.

February gold closed down $7.40 at US$524.10 an ounce. The gold sector was off 1.07%

Kinross Gold lost 2¢, or 0.21%, to $9.46.

In economic news, Statistics Canada’s index of leading indicators rose 0.3 per cent in November, down from a 0.5% increase in October. Also, the Conference Board of Canada reported consumer confidence rose for the second straight month, increasing by 8.5 points to 119.6.

The S&P/TSX Venture composite index finished up 1.26, or 0.06%, to 2,141.63.

In New York, suggestions from the Fed that it was nearing the end of its rate-hiking cycle served to strengthen the markets.

The Dow Jones industrial average closed up 55.95 points to 10,823.72, after hitting an intra-day high of 10,871.51, the Nasdaq Composite index rose 4.05 points to 2,265 while the S&P 500 Index was up 7 points at 1,267.43.

ConocoPhillips Co., the U.S.’s third-biggest energy firm, confirmed it will acquire oil and gas company Burlington Resources Inc. in a deal worth US$35.6 billion. Shares in ConocoPhillips closed down 5% at $58.20 while Burlington shares rose 4.3% to $86.07.