The main Canadian index and New York markets rose Tuesday on positive indications about the economy from central bankers on both sides of the border.

In Toronto, the S&P/TSX Composite Index ended up 3.74 points or 0.04% to 8418.54. Six of the TSX’s sub-indices finished in the black, including financial issues, which rose 0.27%. Investors in Canada were buoyed by the Bank of Canada’s decision to keep its interest rate steady.

Meanwhile, the TSX Venture Exchange – the day’s only loser – fell 16.16, or 1.05%, to 1,527.14. The Canadian dollar slid slightly from U.S.76.46¢ yesterday to U.S.76.14¢ today.

In the U.S., stocks posted their biggest gains since late June after upbeat comments from U.S. Federal Reserve Chairman Alan Greenspan. The Nasdaq Composite Index added 33.24 points or 1.76% to 1917.07 and the Dow Jones industrial average rose 55.01 points or 0.54% at 10149.07. The S&P 500 added 7.77 points, or 0.71%, to 1,108.67.

The Canadian dollar fell 0.39 of a cent to US76.12¢ after the central bank left its key rate unchanged. The bank’s accompanying commentary left currency traders unsure whether rates will go up in September.

Federal Reserve Chairman Alan Greenspan said that while U.S. housing starts were below expectations in June, they are not a signal of an abrupt or significant decline in the housing market. Greenspan also said the slowdown in the rise of the producer price index in June makes him feel “somewhat better” about the possibility of price pressures.