Markets in Toronto breathed a sigh of relief on comments from Russian President Vladimir Putin that Crimea joining his country doesn't mean he would seize other parts of Ukraine.
The S&P/TSX composite index spiked 137.08 points, or 0.1%, to end Tuesday at 14,368.97
The Canadian dollar slid 0.66 cents at 89.74 cents U.S.
Energy stocks rallied with crude oil prices rising. Suncor gained 22 cents to $36.35.
Miners were up 1.3%, even as gold prices dropped 0.9% after waning concerns over the Ukraine crisis prompted investors to shift focus from safe-haven assets. Capstone Mining jumped 13 cents, or 5.1%, to $2.68, and Sherritt International hiked 15 cents, or 4.5%, to $3.51.
Health-care issues rose as Valeant Pharmaceuticals tacked on $4.86, or 3.1%, to $160.63. Among financials, AGF Management improved 26 cents, or 2.3%, to $11.84.
On the economic beat, a cheery sign from Statistics Canada, reporting that manufacturing sales rose 1.5% to $50.4 billion in January, their largest gain since last February.
Elsewhere, the Bank of Canada is redefining the role of its number-two policymaker, introducing changes that may attract a broader range of candidates to fill the job when the current second-in-command, Tiff Macklem, steps down later this year.
ON BAYSTREET
The TSX Venture Exchange gathered 4.81 points to 1,035.97
All but one of the 14 Toronto subgroups were higher, with health-care gaining 2.3%, metals and mining up 1.7%, and energy up 1.4%,
Only gold missed the party, dipping 0.5%.
ON WALLSTREET
Stocks closed higher Tuesday as tensions in Crimea seemed to fade and investors started to focus on what the U.S. Federal Reserve may have planned.
The Dow Jones Industrial Average was in the green 88.97 points to finish at 16,336.19
The S&P 500 index gained 13.42 points to 1,872.25. The NASDAQ spiked 53.36 points to 4,333.31.
On the corporate front, shares of GameStop fell after Wal-Mart said it was getting into the used video game sales market.
Shares of Microsoft rose to a 14-year high on expectations that Microsoft may soon announce a version of its Office software for Apple's iPad.
Shares of FutureFuel surged after the biofuels maker reported better than expected earnings. One trader was excited about the stock's move to more than $20 U.S. a share.
Also, shares of Hertz rose after it announced earnings and said it would spin off its equipment rental business to pay off debt.
Oracle fell in after-hours trading after reporting fiscal third quarter revenue that were slightly less than expected. Adobe Systems reported fiscal first quarter revenue and earnings that topped forecasts.
The Fed's latest policy meeting wraps up on Wednesday afternoon. Janet Yellen, the new Fed chair, will give her first press conference after the meeting.
It is widely expected that Yellen will continue to trim, or taper, the fed's stimulus program by another $10 billion, to $55 billion U.S. a month. The markets will also listen closely to any possible changes to the Fed's guidance on interest rate changes.
The central bank will have two new pieces of data to look at as it continues its meeting.
Consumer prices edged up 0.1% in February. Food prices jumped 0.4% - the largest increase in nearly three years. But inflation is not a huge problem for the Fed or economy right now.
Meanwhile, there were mixed signs about housing. Construction of new homes fell by 0.2% in February, but building permits, a sign of future construction, rose 7.7%.
Prices for 10-year U.S. Treasuries inched up, lowering yields to 2.68% from Monday’s 2.70%. Treasury prices and yields move in opposite directions.
Oil prices advanced $1.50 to $99.58 U.S. a barrel.
Gold prices shed $17.50 to $1,355.40 U.S. an ounce.
