Toronto market posts triple-digit gain as oil and U.S. markets rise

US stock indexes were higher ahead of a Wednesday afternoon decision on interest rate by the Federal Reserve.

Wall Street made few big moves on Tuesday as investors opted to sit on the sidelines ahead of a major day of monetary policy news from the Federal Reserve and the Bank of Japan.

USA crude oil futures settled up 27 cents at $43.30 a barrel after Venezuela’s president said that OPEC members and other major oil producers could agree to a deal to freeze output, and as clashes in Libya disrupted attempts to restart crude exports from key ports.

Royal Bank of Canada advanced 0.6% to $81.21 and Bank of Nova Scotia added 0.8% to $70.55.

In Toronto, the S&P/TSX composite index climbed 188.84 points at 14,710.82, led by large gains in resources including gold, materials, metals and energy.

Canadian National Railway Co gained 1.2 percent to C$84.07, helping the industrials group rise 0.7 percent. The stock has a 1-month performance of 1.54 percent and is -22.55 percent year-to-date as of the recent close.

Suncor Energy Inc. (SU.TO, SU) said that it has been advised by the operator of the Shelburne Basin joint venture exploration project, Shell Canada Limited, that the drilling of the first exploration well has been completed and it is non-commercial. “While we don’t believe the policy makers will raise rates at the upcoming meeting, we foresee a more hawkish group emerging to prepare the markets for a rate increase in December”.

The Fed is expected to keep rates on hold, but investors will be watching closely for hints about future moves. But the contentious issue is when that might happen, when so much depends on whether the data shows the US economy is strong enough to support it.

The Bank of Japan is expected to unveil further measures to boost the ailing Japanese economy.

Shares of Tobira Therapeutics (TBRA.O) rose more than seven times to $35.86 after Allergan (AGN.N) agreed to buy the company in a $1.7 billion deal.

Dow Jones Industrial Average e-mini futures 1YMc1 were up 0.39 percent at 7:15 a.m. ET. Tessera’s stock was up 2.7 percent.