Health care, energy lift TSX

Further signs of U.S. economic growth and budget concessions in Italy drove global markets higher as crude prices returned to a near four-year high.

U.S. private payroll data released Wednesday showed potential for a strong upcoming jobs report while the ISM nonmanufacturing index for September beat expectations, said Anish Chopra, managing director with Portfolio Management Corp.

The index, which measures economic activity, registered 61.6 per cent for the highest level since the index was created in 2008.

Market concern was alleviated when Italy gave signs that if would cut its budget deficit and tackle its debt in the coming years.

The S&P/TSX composite index closed up 54.82 points to 16,072.05, after hitting a high of 16,082.26 on 223.2 million shares traded.

The increase was led by a nearly five per cent gain in the health-care sector, which includes some of the biggest names in the marijuana business, and the important energy sector, which was up 1.9 per cent.

“There’s been a strong move in the price of oil over the last number of weeks and months and that continues today,” Chopra said in an interview.

The November crude contract was up $1.18 at US$76.41 per barrel, hitting its highest level since November 2014. The November natural gas contract was up 6.4 cents at US$3.23 per mmBTU.

The Canadian dollar traded at an average of 77.93 cents US compared with an average of 78.02 cents US on Tuesday.