Source: The Canadian Press

The Toronto stock market moved lower Thursday as a mixed bag of U.S. data failed to ease worries about the strength of the economic recovery.

The S&P/TSX composite index fell 45.47 points to 12,101.79 while the TSX Venture Exchange moved down 0.67 of a point to 1,688.03.

The Canadian dollar lost 0.4 of a cent to 96.71 cents US.

Markets started the session off negative as data showed that jobs in the United States remain scarce and that some companies were still cutting workers amid sluggish economic growth.

The U.S. Labour Department said initial claims for jobless aid rose by 12,000 to a seasonally adjusted 465,000 last week after four weeks of flat or declining figures. Many economists had expected a flat reading or a small drop.

There was increased nervousness from overseas after a closely watched reading on business activity in the 16 countries that use the euro weakened more than expected. Europe’s monthly purchasing managers index, or PMI, fell to 53.8 in September from 56.2 in August.

Particularly worrying was that the figures showed growth in Germany, Europe’s economic powerhouse, had moderated far more rapidly than anticipated.

Losses deepened in the afternoon despite other data which showed that U.S. leading indicators rose by 0.3% in August, suggesting modest economic growth this winter.

“Everyone is looking for reassurance,” said Jennifer Lee, senior economist at BMO Nesbitt Burns. “The fact is the economy is growing but the growth is sluggish.”

And sales of previously occupied homes rose by a better than expected 7.6% in August to a seasonally adjusted annual rate of 4.13 million. But sales were still down 19% from the same month a year earlier.

“Overall, it looks like the housing market has stabilized but at very low levels,” added Lee. “Any increase at this point is good news.”

The industrials sector led TSX losses, down almost 1% with shares in transportation giant Bombardier Inc. (TSX:BBD.B) down eight cents at $4.86 while Canadian National Railways (TSX:CNR) backed off $1.09 to $64.99.

The TSX energy sector lost 0.46% even as oil prices shed early declines following the release of the U.S. leading indicators and housing data. The November crude contract on the New York Mercantile Exchange gained 47 cents to US$75.18 a barrel. Cenovus Energy (TSX:CVE) gained 32 cents to C$28.22 while Canadian Natural Resources (TSX:CNQ) fell 36 cents to C$33.11.

The base metals sector was off 0.54% with December copper on the Nymex ahead three cents at US$3.59 a pound. Teck Resources (TSX:TCK.B) was down 81 cents at C$39.10 and Taseko Mines (TSX:TKO) was up 23 cents to $5.10.

Gold stocks also gave up ground despite December gold in New York rising $4.20 to a fresh record close of US$1,296.30 ounce. Barrick Gold Corp. (TSX:K) faded 43 cents to C$48.23.

The consumers staples sector was also weak with shares in convenience store operator Alimentation Couche-Tard (TSX:ATD.B) down 12 cents at $23.25. Shareholders of Casey’s General Stores (NYSE:CASY) re-elected the company’s board of directors Thursday morning, marking a show of confidence in its defence against a hostile US$2-billion takeover bid from Couche-Tard.

New York’s Dow Jones industrial average closed 76.89 points lower at 10,662.42.

The Nasdaq composite index gave back 7.47 points to 2,327.08 and the S&P 500 index was down 9.45 points at 1,124.83.

In corporate news, video rental giant Blockbuster Inc. is filing for bankruptcy protection in the United States, but its Canadian operations say they’re not affected by the reorganization. Blockbuster Canada vice-president and general manager Barry Guest said Thursday that its operations are still profitable.

McDonald’s Corp. has become the latest bit company to increase its dividend. The world’s biggest hamburger chain raised its dividend 11%. Its shares slipped 48 cents to US$74.65 in New York.

Air Canada shares (TSX:AC.A) were six cents lower at $2.79 amid comments from the airline’s chief financial offer that the carrier is assigning a higher priority to deleveraging its balance sheet than adding planes to its fleet. Air Canada has nearly $1 billion worth of debt coming due over the next two years.

Flight simulator and training company CAE Inc. (TSX:CAE) announced Thursday that it has won $70 million worth of contracts to supply simulators and upgrades for Airbus A350 and Boeing 777 aircraft. The Montreal company’s shares were down 17 cents at $10.63.