A recovery in financial stocks pulled the benchmark index of the Toronto Stock Exchange higher on Tuesday.

The S&P/TSX composite index rose 121.02 points, or 1.3%, to finish at 9,247.17, partially rebounding from Monday’s 311.5 point loss.

Financial stocks bounced back on Tuesday, adding 2.8%.

Bank of Nova Scotia shares advanced $1.81, or 5.6%, to $34.33 and CIBC’s stock jumped $2.63, or 5.2%, to $53.15.

Sun Life Financial Corp. gained $1.47, or 5.5%, to end at $28.32.

Also higher was IGM Financial Inc., up 7.4% to $36.00, and Manulife Financial Corp., up 2.6% to $19.80.

Meanwhile, crude for May delivery closed up US$0.63, or 1.4%, at US$46.51 a barrel New York Mercantile Exchange. The contract expired on Tuesday.

The boost in oil sent the energy group up 1.9%.

Canadian Natural Resources Ltd. gained $1.38, or 2.6%, to end at $55.28.

Shares of Petro-Canada rose 1.7% to $36.58 and Nexen Inc. advanced 2.4% to $22.83.

The materials group retreated on Tuesday as gold futures dipped lower. Gold for June delivery finished down US$4.80, or 0.5%, at US$882.70 an ounce on the Comex division of the New York Mercantile Exchange.

The sub-gold index fell 2.7%.

Shares of Kinross Gold Corp. dipped 3.2% to $17.65 and Goldcorp Inc. dropped $1.56, or 4.5%, to $33.34.

Barrick Gold Corp.’s stock slid $1.49, or 4.1%, to $34.67.

Higher for the day was Inmet Mining Corp., up 6% to $36.65.

Shares of Teck Cominco Ltd. soared 37% after news that the company was granted an extension on its loans. Teck’s B-class shares jumped $3.36 to $12.47.

The junior S&P/TSX Venture composite index recovered from earlier losses to finish down just 1.05 point, or 0.1%, at 974.38.

The Canadian dollar edged up US0.15¢ to close at US80.89¢, after the Bank of Canada cuts its key overnight rate to 0.25%.

American stocks also bounced back from Monday’s slump, helped by renewed confidence after Treasury Secretary Timothy Geithner said most U.S. banks are adequately capitalized.

The Dow Jones industrial average gained 127.83 points, or 1.6%, to 7,969.56.

The S&P 500 index added 17.69 points, or 2.1%, to 850.08.

The Nasdaq composite index climbed 35.64 points, or 2.2%, to 1,643.85.

IE