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Should you diversify your portfolio and invest in American stocks? An investment manager at Desjardins Securities says the answer is always a resounding yes.The Canadian Press

The Toronto stock market closed higher, with commodity prices and resource companies advancing amid signs that central banks are prepared to step up efforts to keep the fragile global economic recovery going.

The S&P/TSX composite index climbed 35.95 points, or 0.24 per cent, to 15,111.13.

The TSX ended the week up 268 points or almost two per cent, leaving the market up 11 per cent year to date.

U.S. stocks also closed higher on Friday, with major indexes rising for a fifth straight week after China's central bank cut its benchmark interest rate and its euro zone peer announced asset purchases in efforts to boost each region's economy.

The Dow Jones industrial average rose 88.81 points, or 0.5 per cent, to 17,807.81, the S&P 500 gained 10.59 points, or 0.52 per cent, to 2,063.34 and the Nasdaq Composite added 11.10 points, or 0.24 per cent, to 4,712.97.

Both the Dow and the S&P ended at new closing records.

For the week, the Dow rose 1 per cent, the S&P added 1.2 per cent and the Nasdaq rose 0.5 per cent.

China's central bank cut its interest rates and promised to inject extra credit into the financial system if needed. And the head of the European Central Bank said the ECB is willing to "step up the pressure" and broaden its efforts to stimulate the struggling euro zone economy.

The Canadian dollar also made a solid advance, up 0.53 of a cent to 88.98 cents (U.S.), as higher than expected inflation in October raised speculation about when the Bank of Canada might hike interest rates.

The benchmark TSX was up for the sixth day and recorded its sixth consecutive weekly gain, recovering from a sharp market correction in October.

"China is looking for ways to deepen and broaden its financial systems, its economy, and they are using market-based tools," said Stephen Wood, chief market strategist, North America, at Russell Investments.

"This is still a world that is dominated by central bank activity," he added.

Shares of energy producers rose 1.8 percent, with Suncor Energy Inc. gaining 2.1 per cent to $40.52 (Canadian) and Canadian Natural Resources Ltd. advancing 1.3 per cent to $42.68.

The materials sector, which includes mining stocks, climbed 0.8 per cent. First Quantum Minerals Ltd. shot up 7.2 per cent to $19.12, and Teck Resources Ltd. jumped 9.4 per cent to $19.94.

With files from Reuters

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