Toronto stocks soared higher in a broad-based rally on Wednesday on signs of an improving U.S. economy.

The S&P/TSX composite index shot up 154.92 points, or 1.14%, to 13,734.54.

The energy sector advanced almost 2% after OPEC said it would leave oil output unchanged.

Oil prices ended the session down 83¢ to US$87.49 a barrel even as U.S. data came out showing an unexpectedly large decline in crude supplies.

EnCana gained $1.54 to $66.50.

Husky Energy and BP announced they plan to create an integrated North American oilsands business, merging refinery and production assets. Husky shares moved up $2.14 to $41.29.

The heavyweight financial groups rose 0.7%.

Bank of Nova Scotia shares slipped 4¢4 to $52.15 while CIBC moved up $2.34 to $87.09 a day before both bank release Q4 earnings.

The industrials sector gained 2.75% with Canadian Pacific Railroad ahead $3.14 to $66.99 and Bombardier up 35¢ to $6.28.

The gold sector was down 0.52% as the February bullion contract on the Nymex declined $3.90 to US$803.70 an ounce. Barrick Gold shares dipped 70¢ to $40.31.

The junior S&P/TSX Venture composite index slipped 2.22 points to 2,692.22.

The Canadian dollar was off 0.29 cent to US98.49¢ as the incoming governor of the Bank of Canada said there are too many differences between the Canadian economy and its American counterpart to even consider fixing exchange rates to the American dollar

In New York, stocks rose sharply after strong economic data calmed recession fears and helped halt a two-day sell-off.

The Dow Jones industrial average finished up 196.23 points, or 1.48%, at 13,444.96. The S&P 500 closed up 22.22 points, or 1.52%, at 1,485.01. The Nasdaq composite index added 46.53 points, or 1.78%, to 2,666.36.