Toronto stocks rallied at the start of the second quarter on Wednesday, as U.S. economic data signalled the recession may be easing.

The S&P/TSX composite index rose 221.43 points, or 2.54%, to close at 8,941.82.

All 10 TSX main groups ended higher.

In the influential financials group, Toronto-Dominion Bank jumped 4% to close at $44.55, while Bank of Nova Scotia rose 3.4% to $32.13.

TD will hold its annual meeting Thursday in Saint John, New Brunswick.

Energy stocks moved higher even as the price of crude oil dipped to US$48.39 a barrel, down US$1.27. EnCana Corp. rose 3.8% and Suncor Energy Inc. rose 1.5%.

The junior S&P/TSX Venture composite index gained 13.28 points, or 1.39%, to 970.09.

The Canadian dollar gained 0.02 of a cent to close at US79.30¢.

In New York, U.S. stocks climbed as factory and home sales data raised hopes recession is moderating.

Government data showed factory activity in March fell at a slower rate than the month before, while pending home sales rose more than expected in February.

The Dow Jones industrial average soared 152.68 points, or 2.01%, to 7,761.60. The S&P 500 rose 13.21 points, or 1.66%, to 811.08. The Nasdaq composite index added 23.01 points, or 1.51%, to 1,551.60.

Today’s economic data was enough to counter a report that showed U.S. private-sector job losses accelerated in March to 742,000, heightening concerns ahead of the government’s monthly payroll numbers on Friday.

IE