Financial, energy and health care stocks led the TSX to a higher close Wednesday, while U.S. markets benefited from improved trade figures. The S&P/TSX composite index finished up 23.43 points to 8,403.77.

The health care index rose 1.1% while the financials and energy indices were both up about 0.8%.

Financial stocks were helped by the increasing likelihood that the Bank of Canada will cut interest rates at its next policy meeting on Tuesday. Weaker than expected trade numbers make a rate cut more likely.

Bank of Montreal rose 55¢ to $55.70; CIBC rose 45¢ to $65.90.

Oil and gas stocks were driven higher by higher prices for the underlying commodities. Talisman Energy gained $1.04 to $75.24; Petro-Canada added $1 to $67.

Gold futures fell US$2 an ounce to US$421.70, which contributed to a 3.9% drop in the TSX gold index. Placer Dome fell $1.19s to $21.40, while Barrick Gold shed 72¢ to $27.40.

Agnico-Eagle fell 15¢ to $16.40, after it said its cash operating costs in the fourth quarter would drop from previous estimates.

Cambior said its gold production would rise by a third this year, and it would slash its hedge book. Cambior shares were down 18¢ to $3.57.

Among technology issues, Nortel shares fell 27¢ to $8.04. Research in Motion rose $4.62 to $102.22 — a new 52-week high.

WestJet shares were down 13¢ to $28. The discount airline said will shift many of its Hamilton-based flights to Toronto in a bid to capture more business from Air Canada.

Shares in Dorel, yesterday’s big mover, fell 75¢ to $39.25. The furniture and children’s products maker said its 2004 earnings would rise as it accrues benefits from its acquisition Tuesday of Pacific Cycle.

The junior S&P/TSX venture composite index fell 21.36 points to 1,774.02.

U.S. stocks moved higher on news that the U.S. trade deficit unexpectedly fell in November and moved higher still after the Federal Reserve’s Beige Book noted that hat the U.S. economy was continuing to rebound.

The Dow Jones industrial average was up 110.96 points to close at 10,538.14. The tech-heavy Nasdaq Composite Index was up 14.70 points to 2111.10, while the broader S&P 500 added 9.30 to 1,130.52.

Bank One Corp.’s shares soared in after-hours trading Wednesday after a report that it was being acquired by J.P. Morgan Chase & Co. — a deal that would merge two of the largest U.S. banks.

The Canadian dollar fell almost a full cent as the U.S. dollar strengthened on the U.S trade numbers. The loonie slipped 1.01¢ to US77.62¢ US.

In other news, Finance Minister Ralph Goodale said on Wednesday that creating a single securities regulator is a priority because without one Canada is ill-equipped to deal with an Enron-like financial scandal.

He said a new watchdog need not be a federal entity but one created by combining the various existing regulators.

“If we in this country were faced suddenly with a situation like Enron, would we have the regulatory capacity in Canada to cope? The answer is probably no,” Goodale told reporters after pre-budget consultations in Toronto.