Oil soars, lifting stock markets to big gains

North American stock markets delivered triple-digit gains today as oil rebounded and investors shook off the gloom that had driven stocks down steadily this week.

In Toronto, the benchmark S&P/TSX composite index jumped 262 points, or 2.1 per cent, to 12,350 just before noon ET Friday.

That ends, at least for now, five consecutive losing sessions that have seen the index shed almost 760 points.

Every sector advanced, led by energy and financials.

The price of oil, which hit a 12-year low on Thursday, reversed course in dramatic fashion and was up $2.80 to $29.01 US a barrel on Friday.

Crude oil began rising late Thursday on prospects for a co-ordinated production cut. That possibility was sparked by comments from the energy minister of OPEC member United Arab Emirates.

U.S. retail sales shine

The Dow Jones industrial average surged 230 points, or 1.5 per cent, to 15,890.  The broader S&P 500 index rose 26 points to 1,855.

Sentiment was being boosted by a report that showed U.S. consumer spending rebounding in January, leading to hopes that economic growth was picking up after stalling at the end of 2015.
 
"This morning's [Friday's] action is being driven by all the big losses over the last few days reversing," said Bo Christiansen, chief analyst at Danske Invest.

The Canadian dollar gained almost half a cent to 72.30 cents US.

Gold futures fell $11.40 US to $1,236.40 an ounce, but were still on track for their best week in four years.

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