Canada's main stock index gained almost 150 points, led by strength in the energy sector, while U.S. stock markets also rose.

The S&P/TSX Composite Index was up 149.78 points, or 0.74 per cent, at 20,376.57.

In New York, the Dow Jones Industrial Average was up 366.58 points at 34,951.93. The S&P 500 Index was up 32.19 points at 4,554.98, while the Nasdaq Composite was up 108.69 points at 14,353.64.

The Canadian dollar traded for 75.82 cents U.S. compared with 75.83 cents U.S. on Monday.

The September crude oil contract was up US$1.58 at US$75.66 per barrel and the August natural gas contract was up 12 cents at US$2.63 per mm/BTU.

The August gold contract was up US$24.40 at US$1,980.80 an ounce and the September copper contract was down a penny at US$3.83 a pound.