North American markets find U.S. stimulus package stimulating

The promise of some extra economic stimulus had the stock markets of North America in a more buoyant mood on Thursday.

Toronto's S&P/TSX composite index surged 191.25 points to 8,879.

New York's Dow Jones industrials closed up just 12.35 points to 8,212.49, after falling more than 200 points earlier in the day.

Stock markets closed higher after investors got a better idea of how much stimulus the new administration will make available to revive the economy.

U.S. president-elect Barack Obama  praised the $825 billion US tax cut and spending bill proposed by Democrats.

"This plan is a significant down payment on our most urgent challenges, and it will contain the kind of strict, independent oversight that will allow the American people to hold Washington accountable for how and when their tax dollars are spent," he said in a statement.

The bill would add to an already massive $1.2 trillion US budget deficit forecast for this year by combining $550 billion US in emergency spending initiatives with $275 billion US in temporary tax benefits over the next two years

The Canadian dollar moved down 0.21 cents to 79.9 cents US while oil declined $1.88 to $35.40 US a barrel.