Markets surge on recovery hopes

North American stock markets rose strongly Wednesday amid optimism the economic recovery is taking hold.

In New York, the Dow Jones Industrial average closed above 10,000 at 10,015.86, up 144.80. It wasthe first time in more than a year that it has finished abovethe symbolic benchmark.

Toronto's main index closed up one per cent, or 119.24 points, at 11,532.78.

The NASDAQ closed up 32.34 at 2,172.23 and the S&P 500 ended at1092.02, up 18.83.

Part of the reason for the gain in Toronto was a surge in commodity prices, especially oil, which is Canada's biggest export. Oil closed up $1.03 cents to $75.18 US. Earlier in the day, it climbed as much as 1.7 per cent to $75.40 a barrel, its highest in almost a year.

The Canadian dollar rose for a fifth straight day Wednesday, edging ever closer to parity with the U.S. currency. The loonie was up 1.02 to 97.50 cents US, late in the trading day.

Analysts offer various reasons for the decline of the U.S. dollar everything from a move into riskier currencies as the stock markets rise and the recovery appears to be taking hold to fears of a growing U.S. budget deficit and possible inflation.

Buoyed by earnings

North American stock markets gained ground as Intel,the world's biggest maker of computer chips, rose after making a better-than-expected revenue forecast for the last three months of the year. It closed up 34 cents to $20.83.

American bank JPMorgan Chase & Co. delivered solid earnings report and finished trading up $1.50 or more than three per cent to $47.16 US.

Gold eased from Tuesday's latest record close, with the December bullion contract on the Nymex down 30 cents to $1,063.90 US an ounce.