TORONTO - The Toronto stock market closed little changed Wednesday with traders disinclined to extend a solid gain from the previous session amid government debt worries.

The S&P/TSX composite index added 7.91 points to 13,340.83 a day after traders responded enthusiastically amid signs of progress in raising the US$14.3-trillion debt limit to avoid default after President Barack Obama backed a bipartisan plan.

However, there was no further signs of progress Wednesday in hammering together a deal to raise the limit by an Aug. 2 deadline while investors also looked to an emergency meeting of EU leaders on Thursday.

Hopes of a dramatic move were dashed Tuesday after Chancellor Angela Merkel said the summit wouldn't yield a quick and comprehensive solution. Expectations were muted as she said there won't be anything as "spectacular" as a restructuring of Greek debt.

"You're not going to have the United States go into default -- there's a lot of posturing going on, they will wake up," said Jim Muir, director at Fraser Mackenzie.

"But Europe is in terrible shape. You can't resolve Greece's problem. You can't have a shrinking economy and pile on more debt."

The TSX Venture Exchange gained 24.39 points to 2,017.86.

The Canadian dollar was off early highs, up 0.38 of a cent to 105.55 cents US. The loonie earlier surged as high as 105.74 cents US, its highest level since late November 2009, a day after the Bank of Canada kept its key rate unchanged at one per cent while preparing markets for an increase possibly later this year.

A bright spot on the market was Apple Inc. Its shares ran up 2.67 per cent to US$386.90 after the company reported quarterly net income of US$7.31 billion, or $7.79 per share, after the market close Tuesday. That's more than double the $3.25 billion, or $3.51 per share, a year ago. Analysts polled by FactSet were expecting earnings of $5.82 per share.

Revenue also blew past expectations, coming in at US$28.6 billion, lifted by the sale of 20.3 million iPhones, millions more than analysts had expected.

The TSX tech sector was little changed while shares in Apple rival Research In Motion Ltd. (TSX:RIM) closed down 18 cents to C$25.26.

The financial sector rose 0.22 per cent as Royal Bank (TSX:RY) climbed 50 cents to $53.56.

The energy sector was up 0.26 per cent as oil prices found lift from a report from the American Petroleum Institute that U.S. crude supplies dropped a more than expected 5.2 million barrels last week. Analysts had forecast a drop of 1.3 million.

The August crude contract on the New York Mercantile Exchange closed up 64 cents US$98.14 and Canadian Natural Resources (TSX:CNQ) gained 25 cents to C$40.67.

The gold sector was also higher as bullion prices backed off record levels for a second day, down $4.20 to US$1,596.90 an ounce. Barrick Gold Corp. (TSX:ABX) rose 50 cents to C$46.71.

The September copper contract on the Nymex dipped three cents to US$4.44 a pound. The base metals sector was up 0.22 per cent as First Quantum Minerals (TSX:FM) gained $1.43 to C$139.94.

The telecom sector backed off 0.94 per cent with Rogers Communications (TSX:RCI.B) down 77 cents to $37.36.

The industrials sector was also a major drag, down one per cent. Canadian transport giant Bombardier Inc. (TSX:BBD.B) fell six cents to $6.38 as American Airlines split a massive new order of at least 460 jetliners between Airbus and Boeing.

New York markets were slightly lower after hopes for an agreement on raising the debt ceiling sent the Dow Jones industrials up 202 points Tuesday, its biggest gain this year.

On Wednesday, the Dow industrials closed down 15.36 points 12,572.06.

The Nasdaq composite index lost 12.29 points to 2,814.23 while the S&P 500 index slipped 0.89 of a point to 1,325.84.

Investors also took in some major dealmaking in the resource and technical sectors.

Microsemi Corp. has made a US$548.7-million hostile takeover offer for Zarlink Semiconductor (TSX:ZL). The U.S. semiconductor company said it has tried to launch private talks with Zarlink executives several times, including two written proposals made as recently as a month ago, and all of them were rejected without discussion. Microsemi's latest offer works out to $3.35 a share, a 40 per cent premium to Tuesday's closing price and its shares jumped $1.21 or 50.63 per cent to $3.60.

Chinese oil company CNOOC Ltd. is buying struggling Calgary-based oilsands producer Opti Canada Inc. (TSX:OPC) for $2.1 billion. The announcement comes a week after Opti Canada filed for a court-supervised restructuring designed to transfer ownership of the oilsands developer to creditors. The TSX said it was reviewing the company's listing and suspended the shares from trading.

And Ensign Energy Services Inc. (TSX:ESI) said it has agreed to acquire the land drilling division of Rowan Companies Inc. for $510 million, plus working capital. Ensign shares gained $1.12 to $20.51.