The Canadian Press

The Toronto stock market got off to a strong start to second quarter trading Thursday as new manufacturing data gave added support to prospects for a continuing economic recovery.

The S&P/TSX composite index climbed 113.33 points to 12,151.06. Gains would have been even greater if not for earnings disappointments from two major Canadian corporations. The TSX Venture Exchange gained 25.99 points to 1,602.54.

The Institute for Supply Management said its U.S. manufacturing index for March came in at 59.6, better than the 57.5 reading that had been expected.

Other manufacturing surveys for the eurozone, Britain and China also outperformed expectations. In the case of the eurozone, manufacturing activity was at a 40-month high in March. The reports suggested international trade was on the mend and contributed to a growing belief that the global economy can avoid slipping back into recession.

“When you look at the U.S. number with details (that) are pretty good, you see big growth in exports, and imports are up as well. So, global trade is expanding and you’re seeing a co-ordinated global economic expansion,” said John Johnston, chief strategist, The Harbour Group, at RBC Dominion Securities.

Research In Motion Ltd. (TSX:RIM) shares fell $6.20 or 8.24 per cent to $69.05 after the BlackBerry maker missed expectations. RIM earned US$710.1 million or $1.27 per share for the quarter ended Feb. 27 compared with a profit of $518.3 million or 90 cents per diluted share a year ago. Revenue in what was the company’s fourth quarter totalled $4.08 billion, up from $3.46 billion.

But analysts had expected earnings of $1.28 per share and revenue of $4.31 billion. Also, the stock was downgraded by Goldman Sachs from neutral to sell with a US$65 price target. It also said that estimates could trend lower because of lower pricing.

The TSX was also weighed down by transportation giant Bombardier Inc. (TSX:BBD.B) after the company reported its net income fell to US$179 million in the latest quarter from $312 million a year earlier. The fourth-quarter profit amounted to 10 cents per share _ a penny below analyst estimates. Revenue of $5.35 billion, down slightly from a year ago, met estimates and its shares were up about two per cent in New York. On the TSX, however, its stock fell 52 cents to C$5.71.

Higher commodity prices pushed the Canadian dollar closer to parity with the U.S. dollar, up 0.73 of a cent to 99.17 cents US. The currency hasn’t hit parity with the greenback since briefly crossing the line during intraday trading July 17, 2008.

The Toronto energy sector ran up 3.23 per cent as oil prices extended a two-month rally to approach the US$85-a-barrel level Thursday as the May crude contract moved ahead $1.11 to US$84.87 a barrel. Suncor Energy rose $1.29 to C$34.32 and Canadian Natural Resources (TSX:CNQ) climbed $3.06 to C$78.23.

Oil prices have jumped from US$69 a barrel in early February on investor expectations that a gradual recovery in the U.S. economy this year will eventually boost crude consumption.

The base metals sector was up 2.86 per cent as May copper added three cents to US$3.58 a pound. Teck Resources (TSX:TCK.B) climbed $1.15 to C$45.40 as subsidiary Teck Coal Ltd. reached a one-year agreement with Canadian Pacific Railway Ltd. (TSX:CP) covering shipments from mines in southeastern British Columbia. Financial details and contract terms were not disclosed. Canadian Pacific was ahead $1.15 at $45.40. Labrador Iron Mines Holdings (TSX:LIM) shot up 63 cents to $7.13.

The TSX global gold index rose with the June bullion contract on the New York Mercantile Exchange ahead $11.60 at US$1,126.10 an ounce. Barrick Gold Corp. (TSX:ABX) was up 74 cents at C$39.71 and Eldorado Gold (TSX:ELD) advanced 30 cents to C$12.63.

Financial stocks and consumer discretionary stocks also supported the TSX, with Manulife Financial (TSX:MFC) ahead 21 cents at $20.25 while auto parts company Magna International (TSX:MG.A) ran up 52 cents to $63.37.

New York markets finished higher, also boosted by positive employment news a day before the U.S. government releases it March non-farm payrolls report.

The Dow Jones industrial average was 70.44 points higher at 10,927.07. The Nasdaq composite index rose 4.62 points to 2,402.58, while the S&P 500 index gained 8.67 points to 1,178.1.

The U.S. Labour Department said initial jobless insurance claims dipped last week to 439,000. Economists had forecast claims would drop to 440,000.