Canadian equities continued to climb higher on Tuesday, bolstered by strength in financial stocks and gold companies.

The S&P/TSX composite index gained 186.58 points, or 2%, to finish at 9,472.09.

The financials group led the way with a gain of 3.6%.

Bank of Montreal shares rose $2.13, or 6.6%, to $34.66 and Canadian Imperial Bank of Commerce was up $2.67, or 5.1%, to $55.11.

Also higher was Manulife Financial Corp., up 6% to $24.11, and Fairfax Financial Holdings Ltd., up 5.8% to $383.89.

Shares of Sun Life Financial Inc. gained 4.3% to close at $29.95.

A rally in gold mining companies pulled the materials group higher by 2% as gold futures advanced. Gold for February delivery closed up US$8.20, or 1%, at US$866 an ounce on the Comex division of the New York Mercantile Exchange.

Agnico-Eagle Mines Ltd. rose 4.3% to $61.50 and Yamana Gold Inc. advanced 5.4% to $8.98.

Shares of First Quantum Minerals Ltd. soared 17.7% to $27.01 and Thompson Creek Metals Company Inc. got a 9% boost to $6.40.

The energy group experienced gains of 1.7% despite oil futures slipping lower for the day. Crude for February delivery ended down US23¢, or 0.5%, at US$48.58 a barrel on the New York Mercantile Exchange.

Shares of Suncor Energy Inc. jumped 5.9% to $29.02 and Petro-Canada shares rose 3.3% to $30.95.

Other energy industry players dipped lower, including EnCana Corp., down 2.5% to $60.86, and Nexen Inc., down 0.7% to $23.27.

The telecom sector was the biggest decliner on the TSX, down 1.5%. It was weighed down by a 5.9% drop for Rogers Communications Inc.’s B-class shares, after the company reported better-than-expected growth of 3% in its customer base in the fourth quarter, but a drop in sales of iPhones. Rogers’ shares ended the day at $35.00, down $2.19.

The S&P/TSX Venture composite index grew by 38.62 points, or 4.4%, to close at 913.11.

The loonie moved higher by half a cent against its American counterpart, to finish the day at US84.55¢.

Stocks in the United States rebounded from Monday’s losses as investors gained confidence in anticipation of the government’s looming stimulus package. The stock markets held onto gains despite news that previously owned U.S. homes fell by 4% in November from the prior month, and factory shipments plunged 5.3%.

The Dow Jones industrial average advanced 62.21 points, or 0.7%, to 9,015.1.

The S&P 500 gained 7.25 points, or 0.8%, to 934.7 and the Nasdaq composite rose 24.35 points, or 1.5%, to 1,652.38.

IE