TSX surges as corporate earnings hopes trump soft economic data

TORONTO — The Toronto stock market surged almost 200 points Thursday as traders shrugged off some glum economic data.

Instead, investors concentrated on a surprisingly strong start to the corporate earnings season and a positive assessment of the economy from the U.S. Federal Reserve.

The S&P/TSX composite index chalked up a solid gain for a second session, ahead 187.89 points to 12,214.65 and the TSX Venture Exchange climbed 37.37 points to 1,472.5.

The World Bank trimmed its growth outlook for China this year to 8.2 per cent from 8.4 per cent. It cited U.S. and European economic woes and Chinese lending and investment curbs imposed to cool an overheated economy.

The bank stressed it still expects a gradual slowdown at the world’s second-biggest economy but added that Beijing should be ready to launch new stimulus if needed.

China’s central bank reported a surprising jump in loans in March. That eased concerns about a sudden slowdown in the Chinese economy, which has helped pull the globe out of recession.

But the government has been clear about its intentions to rein in an overheated economy for some time.

“I’m shocked any time someone is surprised at the comments coming from China that their economy is slowing down,” said Philip Petursson, director of institutional equities at Manulife Asset Management.

The World Bank report came out a day ahead of the release of China’s firstquarter economic growth figures.

Rising commodities helped push the Canadian dollar up 0.97 of a cent and back above parity to 100.55 cents US.

U.S. markets were higher despite a report from the U.S. Labour Department that said weekly unemployment benefit applications jumped 13,000 to a seasonally adjusted 380,000, the highest level in two months.