The TSE 300 index refused to let higher North American jobless rates undermine hopes of an economic recovery on Friday as the determined market staged a late rally to close higher and post a 3% gain for the week.

It closed up 3.13 points, or 0.04%, at 7,616.80 points, but some investors felt unexpected negative news could push the fragile market flat on its face. Volume was heavy at 111 million shares.

The market’s late rebound came despite a rise in Canada’s jobless rate to a two-year high of 7.5% in November. It also shrugged off figures showing the U.S. economy lost 331,000 non-farm jobs in November, far worse than anticipated.

Overall, seven of the TSE 300’s sub-indexes were higher, with utilities and transportation sectors leading all groups, with both up about 1.2%.

The industrial products sector, which managed an 11% gain on the week, closed down 0.3 % as bellwether Nortel Networks Corp. fell 22 cents, or 1.5% , to $13.88.

Shares of aerospace and transportation group Bombardier Inc. closed down 34 cents, or 2%, at $14.96 despite inking a $280 million contract to supply 100 locomotives for Italian Railways on Friday.

The major averages finished lower and also closed towards the session’s worst levels. Nonetheless, both the Dow and the Nasdaq managed to hold notable technical support levels. The Dow survived a test of support at 10,000 while the Nasdaq finished above the 2,000 level. For the week, the Dow put up a 2.0% gain while the Nasdaq finished higher by 4.7%.

The CDNX closed up 38.68 points from yesterday to close at 3161.67 or 1.2%. Volume was strong at 42 million shares.