TORONTO - The Toronto stock market surged Wednesday morning as buyers moved in despite data showing that Canadian economic growth faltered in April while U.S. job growth was also a big disappointment. The S&P/TSX composite index moved 111.1 points higher to 11,374.9 and the TSX Venture Exchange added 4.91 points to 1,414.65 after Statistics Canada reported that real gross domestic product was unchanged in April after seven consecutive monthly increases. The agency reported a large decline in retail trade and smaller declines in manufacturing and utilities were offset by increases in mining, wholesale trade, the public sector and construction. However, analysts were quick to point out that the flat GDP showing for the Canadian economy during April doesn't mean the Canadian recovery is in trouble. "The strong momentum late in the first quarter resulted in real GDP being up at a 1.8 per cent annualized rate in April relative to the average level in the first quarter," said RBC assistant chief economist Dawn Desjardins. "This followed 6.1 per cent and 4.9 per cent annualized gains in output the first and fourth quarters respectively." She added that growth likely resumed in May and June. The Canadian dollar moved 0.24 of a cent lower to 94.52 cents following the release of the report. Buying sentiment was muted by some disappointing employment news two days before the release of the U.S. June non-farm payrolls report. The ADP jobs report said that private sector payrolls expanded by only 13,000 last month. Hopes have been modest ahead of Friday's jobs data. Economists expect an overall drop of about 200,000 jobs largely because the government terminated many temporary jobs created for the U.S. census. They had also forecast that the private sector created about 50,000 jobs last month. Stock markets tumbled Tuesday after an index that forecasts economic activity for China was revised lower while other data showed that U.S. consumer confidence dived in June. The latest indication that the global economy recovery is slowing pushed the TSX down 343 points while the Dow industrials tumbled 268 points. On Wednesday, the TSX base metals sector was up 1.15 per cent even as the September copper contract on the New York Mercantile Exchange lost early gains and was down two cents at US$2.89 a pound after dropping 16 cents Tuesday. Teck Resources (TSX:TCK.B) climbed 28 cents to $32.05 and HudBay Minerals (TSX:HBM) was ahead 17 cents to $11.35. The energy sector was up one per cent as the August crude contract on the New York Mercantile Exchange rose 43 cents to US$76.37 a barrel following a report showing a larger than expected drop in U.S. crude supplies — a sign demand may be improving. Suncor Energy (TSX:SU) rose 33 cents to $31.98 and Canadian Natural Resources (TSX:CNQ) advanced 49 cents to $35.54. Financials were also a major source of support, up 1.06 per cent with Bank of Montreal (TSX:BMO) ahead 97 cents to $58.32 and Scotiabank (TSX:BNS) climbed 62 cents to $49.37. The gold sector was ahead 1.32 per cent as the August bullion contract in New York gained $4.80 at US$1,247.20 an ounce. Barrick Gold Corp. (TSX:ABX) rose 85 cents to $48.29. New York's Dow Jones industrial average was down 5.4 points to 9,864.9. The Nasdaq composite index gained 7.42 points to 2,142.6 while the S&P 500 index edged up 0.75 of a point to 1,042. In corporate news, Shaw Communications Inc. (TSX:SJR.B) reported third-quarter net income rose to $158 million, or 37 cents per share, compared to $132 million, or 31 cents a share, a year ago. Revenue increased 10 per cent to $944 million. Shaw also expects the acquisition of Canwest Global Communications Corp.’s broadcasting division will be delayed until early 2011 and its shares were up 17 cents to $19.30. West 49 Inc. (TSX:WXX), the youth-oriented Canadian clothing and sporting goods retailer, has agreed to be acquired by Billabong International Ltd. for about $83 million. West 49 shares jumped 73 cents or 132.7 per cent to $1.28. Daylight Energy Ltd. (TSX:DAY) says it has struck a deal to sell some of its non-core eastern Alberta oil and natural gas assets to private company Gear Energy Ltd. for $125 million — $100 million in cash and $25 million in equity. Daylight shares gained seven cents to $9.06. Positive news from Europe had earlier helped investor sentiment Wednesday. The European Central BankInve said Wednesday it will lend euro131.9 billion (US$161 billion) to banks for three months — a smaller-than-expected sum that suggests banks’ cash needs are easing despite lingering worries about the eurozone debt crisis. The loan came as a larger batch of 12-month loans is due to expire and sent a hopeful signal on the health of the banking sector and money markets. And Germany’s unemployment rate declined to 7.5 per cent in June thanks to an improving economy and a traditional springtime upturn. In Asia, major indexes closed down as concerns lingered about Chinese growth and lower-than-expected U.S. confidence for June. Japan’s Nikkei 225 stock average shed two per cent and Hong Kong’s Hang Seng dropped 0.6 per cent. London's FTSE 100 index was up 0.19 per cent, Frankfurt's DAX was ahead 0.3 while the Paris CAC 40 gained 0.09 per cent.

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