Toronto stocks ended higher, while New York markets rallied, as oil prices declined and investors showed confidence in the economy despite the devastating effect of Hurricane Katrina.

The S&P/TSX composite index finished up 26.24, or 0.24%, to 10,798.12.

Volume on the senior exchange was 254 million shares.

Eight of the 10 TSX main sub-groups were up, with the heavily weighted financials sector gaining 0.57%.

The Royal Bank of Canada climbed $1.20, or 1.48%, to $82.40, while Bank of Nova Scotia advanced 31¢, or 0.76%, to $41.06.

The energy sector declined 0.76%.

A barrel of light crude settled at $65.85 U.S., down $1.61, on the New York Mercantile Exchange, after industrialized nations agreed to release 60 million barrels of crude from stockpiles in the wake of Hurricane Katrina. Also, some Gulf Coast refineries were starting to come back on line.

Deer Creek Energy Ltd. surged $7.35, or 29.49%, to $32.27 after a subsidiary of French energy company Total increased its bid for the company by 24% to $1.58 billion.

Market volume heavyweight Nortel Networks lifted 13¢, or 3.69%, to $3.65. The information technology group was up 1.13%.

Teck Cominco Ltd. gained $1.54, or 3.13%, to 50.71after the company said it is paying $475 million for a 15% stake in the Alberta Fort Hills oil sands project being developed by Petro-Canada and UTS Energy Corp.

The Canadian dollar closed down 0.09 of a U.S. cent to 84.12¢ U.S.

The junior S&P/TSX venture exchange finished down 1.90, or 0.10%, to 1,949.73.

In New York, markets rose as a stabilization in the price of oil, good corporate news from Wal-Mart, Coca-Cola and Home Depot, and the feeling the Federal Reserve might soon end its current run of interest rate hikes encouraged investors.

The Dow rose 141.87, or 1.36%, to 10,589.24, the S&P500 index gained 15.37, or 1.26%, to 1,233.39, and the Nasdaq composite index added 25.79, or 1.2%, to 2,166.86.