Falling oil shares out-dueled rising gold shares Thursday morning to keep Toronto’s main market in the red, while U.S. markets were lower on two negative reports about the economy.

At midday, the S&P/TSX composite index was down 10.10 points or 0.12% at 8575.99, while the junior TSX Venture Exchange was up just 1.76 points or 0.11% at 1540.33. In New York, the Dow industrial average was down 50.29 points or 0.50% at 10058.89. The Nasdaq was ahead 2.89 points or 0.15% at 1888.6 and the S&P 500 index dipped 3.27 points or 0.29% to 11101.29.

The Canadian dollar was up 0.38 of a cent at US78.27¢, its highest level since early January.

In Toronto, energy shares were down 0.74% as oil prices declined following Wednesday’s surge that was triggered by disappointing report from the U.S. Department of Energy detailing falling crude inventory levels. The price of crude oil for November delivery was off 44¢ to US$47.91 US a barrel. In addition, Deutsche Bank downgraded the major integrated oil sector to “neutral” from “overweight,” depressing Canadian integrateds such as Petro Canada and Shell Canada.

Gold shares were up, by 1.32% in the morning, but not enough to carry the market, as the price of bullion ran up $2.90 to US$409.90 an ounce in New York.

Manitoba Telecom Services was the most active on the TSX – gaining 69¢ or 1.61% to $43.44. BCE Inc. said on Thursday it was selling 13.5 million MT shares as part of its previously announced plan to shed its stake in its one-time ally.

Meanwhile, the U.S. Conference Board said its Composite Index of Leading Economic Indicators fell 0.3% in August to 115.7, following a decline of 0.3% in July and larger than the 0.2% drop forecast by economists. The index, which measures the potential for future economic growth, left Wall Street with reduced hopes for a strong finish to the year, though the Conference Board said the three months of decreases were not enough to signal an end to growth entirely.

Investors were also concerned about job growth — and the resulting consumer spending — as the Labor Department reported a 14,000 increase in first-time jobless claims for the week. While the hurricanes in Florida were blamed for the jump, investors have been hoping for a return to this spring’s strong job growth as a sign of strength in the economy.

One day after Morgan Stanley’s disappointing earnings dragged on the brokerage sector, A.G. Edwards Inc. reported results that also fell short expectations. The company’s stock fell 34¢ to US$34.13 after A.G. Edwards missed estimates by 3¢ per share. Morgan Stanley rebounded 57¢ to US$49.29.

The downgrade of the petroleum sector by Deutsche Bank also weighed heavily on U.S. energy stocks, and particularly on ExxonMobil, which was separately downgraded by the brokerage firm because it felt the stock was fairly valued with limited potential to move higher. ExxonMobil dropped 94¢ to US$47.92.

Overseas, Hong Kong’s Hang Seng Index rose 8.2 points, or 0.06% to 13,280.43. The big Tokyo markets were closed for a national holiday and will reopen Friday.

London’s FTSE 100 index lost 16.2 points at 4,576.1.

Frankfurt’s DAX 30 backed off 0.9% while the Paris CAC 40 was off 1.1%.