Oil soars 12%, stock markets score big gains

North American stock markets delivered triple-digit gains on Fridayas oil rebounded and investors shook off the gloom that had driven stocks down steadily this week.

In Toronto, the benchmark S&P/TSX composite index jumped 294points, or 2.4per cent, to close at 12,381.

That ends, at least for now, five consecutive losing sessions that had seen the index shed almost 760 points.

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Every sector advanced, led by energy and financials.

The price of oil, which hita 12-year low on Thursday, reversed course in dramatic fashion on Friday. March oil futures surged 12.3 per cent, or $3.23 US, to settle at $29.44US a barrel.

Bloombergsaid it was the biggest one-day rise for oil futures in seven years. But prices are still down 21 per cent this year.

Crude oil began rising late Thursdayon prospects for aco-ordinated production cut. Talk of that was sparked by comments from the energyminister of OPEC member United Arab Emirates, who said oil producers were ready to work together.

U.S. retail sales shine

The Dow Jones industrial average surged 314points, or 2.0per cent, to close at 15,974. The broader S&P 500 index rose 36points, or 2.0per cent, to 1,865.

Sentiment was being boosted by a report that showed U.S.consumer spending reboundingin January, leading to hopes that economic growth was picking up after stalling at the end of 2015.

"It's too early to say whether [the rally]is the beginning of a more sustained recovery, but it's encouraging and it shows there is still interest in stocks," saidJohn Carey, portfolio manager at PioneerInvestment Management in Boston.

The Canadian dollar, which often movesin tandem with oil prices, gained almost a third of a cent andclosed at72.14cents US.

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February gold futures fell $8.80 USto settle at $1,239.10an ounce, but still hadtheir best week in four years.