Toronto stocks ended higher on Thursday, buoyed by a surging energy sector and a rally in telecommunications. South of the border, markets also advanced. Investors were calmed by comments from U.S. Federal Reserve chairman Alan Greenspan that the American economy is relatively strong.

Greenspan says that the economy appears to be on “reasonably firm footing and underlying inflation remains contained.” Economists say the Fed will continue its measured approach to raising rates.

Here at home the S&P/TSX composite index finished the day up 55.56, or 0.57%, to close at 9,763.44. Volume was strong at 212 million shares. Seven of the 10 TSX sub-indexes rose led by energy, which climbed 2.10%, and telecoms, which added 1.35%. Industrials lagged 0.91%.

In the telecom sector, Telus gained 98 cents, or 2.30%, to close at $43.61 and BCE lifted 64 cents, or 2.20%, to close at $29.72.

CP Ships plummeted $1.25, or 5.95%, to close at $9.76. UBS analysts downgraded the company’s stock from ‘neutral’ to ‘reduce’, saying that CP Ships was overvalued and too reliant on the Atlantic market.

The S&P/TSX Venture Exchange closed up 5.43, or 0.33%, at 1.659. 25.The Canadian dollar fell 0.35 of a cent to close at U.S. 79.55¢.

July-dated crude futures gained $1.74 U.S., or 3.3%, to close at $54.28 U.S. a barrel on the New York Mercantile Exchange. Canadian Natural Resources rose $2.03, or 5.35%, to end at $39.99, while Western Oil Sands improved $1.13, or 5.79%, to end at $20.65.

In New York, the Dow Jones industrial average rose 26.16, or 0.2%, to 10,503.02, after spending the early part of the day’s session in the red. The tech-heavy Nasdaq composite index gained 16.73, or 0.8%, to close 2,076.91. The S&P 500 lifted 6.26, or 0.52%, to finish at 1,200.93.