Strength in commodities stocks and promising economic news from south of the border helped carry the Toronto Stock Exchange’s benchmark index sharply higher on Tuesday.

The S&P/TSX composite index surged 230.95 points, or 2.1%, to close at 11,018.10.

The materials group jumped 3% as gold futures rose for a fourth consecutive session. August gold futures rose US$10.90, or 1.1%, to end at US$967.50 an ounce on the Comex division of the New York Mercantile Exchange.

The TSX sub-gold index advanced by 2%.

Shares of Barrick Gold Corp. gained 3.4% to $38.90 and Inmet Mining Corp. rose 4.4% to $47.15.

First Quantum Minerals Ltd. finished the day at $74.20, up $2.45, or 3.4%.

Shares of Teck Resources Ltd. climbed 2.6% to $29.08.

Forsys Metals Corp. saw its stock surge more than 36% after confirming that George Forrest International Afrique S.P.R.L. had reached a deal to acquire the mining company, as previously announced. Forsys’ shares gained $1.72, closing at $6.46.

The energy group also gained 3% on Tuesday, despite a small dip in oil futures. Crude for September delivery fell US16¢ to end at US$71.42 a barrel on the New York Mercantile Exchange.

Shares of Suncor Energy Inc. soared 4.6% after the company announced on Monday that it had completed the previously announced merger with Petro-Canada. Suncor shares added $1.60 to close at $36.44, while Petro-Canada’s stock gained 4.9% to $46.69.

Canadian Natural Resources Ltd. jumped 5.1% to $68.06 and EnCana Corp.’s stock rose 1.9% to $58.87.

Financial stocks advanced by 1.5% on Tuesday.

Gainers included CIBC, up 2.2% to $67.75, and Toronto-Dominion Bank, up 2.8% to $64.85.

Shares of Onex Corp. jumped $1.48, or 7%, to close at $22.63.

Also higher was Industrial Alliance Insurance and Financial Services Inc., which finished at $30.88, up $1.28, or 4.3%.

Meanwhile, shares of cheese producer Saputo Inc. gained 6% after the company reported net earnings of $84.8 million for its fiscal 2010 first quarter, up 2.2% from a year earlier. The company’s shares gained $1.41 to $24.95.

Pulp and paper company Domtar Corp. said its net earnings doubled in the second quarter to US$48 million, sending its shares soaring $5.36, or 26%, to $25.82.

Junior stocks on the S&P/TSX Venture Exchange also advanced on Tuesday. The S&P/TSX Venture composite index finished at 1,195.98, up 16.41 points, or 1.4%.

The Canadian dollar gained a quarter of a cent on Tuesday to close at US93.07¢.

Promising economic news also helped the major U.S. stock market indices continue to climb on Tuesday. A report from the U.S. Commerce Department showed that American consumers’ spending rose by 0.4% in June, beating analysts’ expectations slightly. In addition, new data showed that U.S. pending home sales increased by 3.6% month-over-month in June, also exceeding expectations.

The Dow Jones industrial average added 33.63 points, or 0.4%, to close at 9,320.19.

The S&P 500 index rose 3.02 points, or 0.3%, to end at 1,005.65.

The Nasdaq composite index gained 2.7 points, or 0.1%, to finish at 2,011.31.

IE