Canada's main stock index closed at a record high on Tuesday, with energy shares leading broad-based gains as oil prices climbed, while Restaurant Brands International Inc jumped more than 7 per cent after it announced an acquisition.

Gains for the Toronto Stock Exchange's S&P/TSX composite index came as data showed the fastest pace of growth in euro zone business activity for six years, while Wall Street also reached record highs as investors cheered strong results of top U.S. retailers.

"All of this support the view that the U.S. consumer and the housing market is doing quite well," said Cavan Yie, senior equity analyst at Manulife Asset Management.

The Toronto Stock Exchange's S&P/TSX composite index closed up 83.74 points, or 0.53 per cent, at 15,922.37, a record closing high.

The index has surged 38 per cent since hitting a three-year trough in January last year.

"You have more incrementally positive commentary out of OPEC which is supporting oil prices, which in turn supports rising inflation and that in combination with the U.S. consumer doing well, housing market doing well, this is all a recipe that is positive for equities," Yie said.

Shares of Restaurant Brands International Inc (QSR.TO) surged more than 7 per cent to $75.65. The owner of the Burger King and Tim Hortons fast-food chains said it would acquire Popeyes Louisiana Kitchen for US$1.8 billion in cash.

ECN Capital Corp (ECN.TO) jumped 14.1 per cent to $3.64 after it said it would sell its U.S. commercial and vendor finance business to PNC Financial Services Group (PNC.N) for about US$1.25 billion in cash.

The overall financials group edged up 0.1 per cent, while the energy group climbed 1.2 per cent as oil prices rose.

U.S. crude prices settled 66 cents higher at US$54.06 a barrel on the Organization of the Petroleum Exporting Countries' optimism for greater compliance with its supply cut deal.

Ritchie Bros. Auctioneers Inc (RBA.TO) surged 12.7 per cent to $45.72 after it reported fourth-quarter and 2016 annual results, while the overall industrials group rose 1.2 per cent, helped also by gains for railroad stocks.

All 10 of the index's main groups ended higher, with the materials group, which includes precious and base metals miners and fertilizer companies, adding 0.5 per cent.

Teck Resources Ltd (TECKb.TO) rose more than 4 per cent to $29.15 but Goldcorp Inc (G.TO) retreated 1.2 per cent to $22.48.

Gold futures were unchanged at US$1,237.1 an ounce and copper prices declined 0.2 per cent to US$6,060.15 a tonne.   

U.S. MARKETS

U.S. stocks rose to fresh record highs on Tuesday, boosted by strong earnings reports from Wal-Mart and Home Depot and continued optimism about the economic agenda of President Donald Trump.

Wal-Mart's (WMT.N) shares were the top gainer in the Dow Jones Industrial Average, rising 3 per cent after the world's largest retailer reported higher-than-expected U.S. sales.

Home Depot (HD.N) shares gained 1.4 per cent after the home improvement retailer reported higher-than-expected quarterly profit and sales, boosted by a strong U.S. housing market.

In broad gains that saw all 11 major S&P 500 sectors close higher, nearly one in every five stocks on the benchmark index hit a new 52-week high.

The S&P has climbed 10.6 per cent since Trump's Nov. 8 election, sparked by the promise of tax reforms, reduced regulations and increased infrastructure spending.

"There was a period last week, I think, where people were getting a little worried about whether the administration was getting sidetracked," said Rick Meckler, president of LibertyView Capital Management in Jersey City, New Jersey.

"A couple days later, those worries seem to have temporarily subsided," Meckler said. "If their platform can go through, I think a lot of investors see it as very positive for stock valuations."

The Dow Jones Industrial Average rose 118.95 points, or 0.58 per cent, to 20,743, the S&P 500 gained 14.22 points, or 0.60 per cent, to 2,365.38 and the Nasdaq Composite added 27.37 points, or 0.47 per cent, to 5,865.95.

All three indexes tallied closing all-time highs, with the Dow notching a record for an eighth straight session.

The S&P is trading at 17.8 times earnings estimates for the next 12 months, well above the long-term average of 15 times, according to Thomson Reuters Datastream.

Overall profit for S&P 500 companies is estimated to have risen 7.5 per cent in the fourth quarter, Thomson Reuters I/B/E/S said in a report last Friday.

"YouRve had an earnings season that has actually been better than expected, and I think thatRs what people are looking for, they were looking for something to justify where stock prices were," said Peter Costa, president of trading firm Empire Executions.

In other corporate news, Popeyes Louisiana Kitchen (PLKI.O) jumped 19.1 per cent after Burger King owner Restaurant Brands (QSR.TO) agreed to acquire the restaurant chain for USUS$1.8 billion.

More than 6.7 billion shares changed hands in U.S. exchanges, similar to the 6.8 billion daily average over the last 20 sessions.

Advancing issues outnumbered declining ones on the NYSE by a 2.57-to-1 ratio; on Nasdaq, a 1.38-to-1 ratio favored advancers.

The S&P 500 posted 93 new 52-week highs and no new lows; the Nasdaq Composite recorded 223 new highs and 26 new lows.