Toronto stocks rebounded on Wednesday, getting a lift from rising energy and mining issues.

Financial markets recovered from the previous session’s sharp drop after central banks joined forces today to launch short-term funding to ease the credit crunch.

The Bank of Canada said it is making more money available to commercial banks in an effort to ease pressures in global credit markets.

The S&P/TSX composite index closed up 85.67 points, or 0.62%, at 13,809.38, after rising as high as 13,942.04

Stocks pulled back late in the day as nervousness returned to the market.

Five of the 10 TSX main groups ended higher, led by a 1.48% rise among materials issues and a 2.04% rise in energy stocks.

Oil jumped nearly 5% to over US$94 a barrel. The January crude oil contract on the New York Mercantile Exchange rose $4.37 to US$94.39 a barrel.

Shares of EnCana rose more than 3% after the company said it will raise production by 5% in 2008.

EnCana stock climbed $2.23 to $68.65.

Gold prices jumped $1.70 to US$818.80, sending the TSX gold sector up just over 2%. Barrick Gold shares climbed $1.03 to $40.39.

The financials group lost early gains, shedding 0.2%, with CIBC down 67¢ to $79.59 and Bank of Montreal up 57¢ to $60.23.

The junior S&P/TSX Venture composite index gained 10.51 points, or 0.39%, to 2,735.58.

The Canadian dollar moved up 0.12 of a cent to US98.7¢.

In New York, stocks ended moderately higher, but well off session highs as investors worried whether action taken by the central banks was enough to shore up the U.S. economy.

The Dow Jones industrial average rose 41.13 points, or 0.31%, to end at 13,473.90. The S&P 500 was up 8.94 points, or 0.61%, at 1,486.59. The Nasdaq composite index was up 18.79 points, or 0.71%, at 2,671.14.