TSX eyes best day in two months

Canada's main stock index was on course for its biggest percentage gain in two months on Wednesday as energy stocks climbed more than tree per cent, while investors focused on the U.S. Federal Reserve's policy decision due later in the day.

The Toronto Stock Exchange's S&P/TSX composite index added 0.75 per cent to 20,395.51, set for its best day since July 21.

The energy group extended gains for a second straight session as crude prices climbed more than $1 after data showed U.S. crude stocks fell more than expected last week in the wake of two hurricanes.

The materials sector, which includes precious and base metals miners and fertilizer companies, added 1.6 per cent.

Commodities and other risky assets rallied as China's central bank injected cash into the banking system and on relief that the country's debt-burdened Evergrande would pay interest on a domestic bond.

“Now with People's Bank of China stepping in to support China's financial system, commodities are bouncing back and that's a positive for Canadian markets,” said Colin Cieszynski, chief market strategist at SIA Wealth Management.