TORONTO - The Toronto stock market registered a sharp gain Wednesday as investors moved back into commodity stocks following a string of losses caused by worries about the global economy.

The S&P/TSX composite index ran ahead 208.7 points to 11,780.67, making up all of Tuesday's 199-point slide triggered by a slowdown in China's manufacturing sector and worries about the European debt crisis.

The TSX Venture Exchange declined 4.08 points to 1,483.92.

The Canadian dollar climbed 1.42 cents to 96.3 cents US.

The energy sector gained 3.16 per cent as the July crude contract on the New York Mercantile Exchange rose 28 cents to US$72.86 a barrel. Suncor Energy Inc. (TSX:SU) gained $1.28 to C$33.17 while Canadian Natural Resources (TSX:CNQ) rose $1.53 to C$36.68.

The base metals sector was ahead 4.2 per cent even as July copper in New York slipped two cents to US$3.04 a pound. Teck Resources (TSX:TCK.B) climbed $2.19 to C$36.06, while Quadra FXN Mining (TSX:QUX) was ahead 33 cents at C$13.59.

Financials also participated in the gains, with the sector ahead 1.54 per cent. Scotiabank (TSX:BNS) extended its advance even further after a better-than-expected quarterly earnings report on Tuesday. Scotiabank stock was up $1.30 at $50.82 on Wednesday, while CIBC (TSX:CM) added $1.78 to $72.59.

All sectors moved higher except for the gold group as the August gold contract on the Nymex declined $4.30 to US$1,220.60 an ounce. Iamgold Corp. (TSX:IMG) faded 27 cents to C$17.92.

Stocks also got a boost as the euro held above the four-year low it hit on Tuesday.

The euro, which is used by 16 European countries, has heavily influenced trading over the past month. The currency has become an indicator of confidence in Europe's ability to contain a government debt crisis that began in Greece, but has spread to other countries, including Spain and Portugal. The euro traded at US$1.2241 late in the afternoon.

The overseas worries come at a time when data has been showing the economic recovery in North America, and particularly in Canada, is solidly in place. On Monday, Statistics Canada said the economy grew at an annualized rate of 6.1 per cent in the first quarter and the Bank of Canada felt confident enough about the recovery to raise interest rates Tuesday by a quarter point, the first increase in years.

In the U.S., data Tuesday showed continued expansion of the American manufacturing sector while a report on housing sales Wednesday came in better than expected and sent New York markets sharply higher.

"We're kind of caught in the middle," said Kathryn Delgreco, investment adviser at TD Waterhouse.

"I think the market is trying to grapple with the transition between a domestic North American economy that is clearly recovering and is in very good shape (with) this continued euro crisis and the sovereign debt issues."

The Dow Jones industrial average jumped 225.52 points to 10,249.54 after a deadline for a U.S. federal tax credit pushed the number of homebuyers signing contracts to the highest level since October.

The U.S. National Association of Realtors says its seasonally adjusted index of sales agreements for previously occupied homes rose six per cent in April from a month earlier to a reading of 110.9, better than the reading of 108 that economists expected.

The Nasdaq composite index rose 58.74 points to 2,281.07, while the S&P 500 index was up 27.67 points to 1,098.38.

Next up in economic news is the release of May employment data for the United States and Canada on Friday.

Economists believe the American unemployment rate dipped to 9.8 per cent in April, with employers adding 513,000 jobs. It's estimated the Canadian economy added about 20,000 jobs last month.

In corporate news, Brazilian steel producer Gerdau SA plans to buy out the stock in Gerdau Ameristeel Corp. (TSX:GNA) it doesn't already own in a bid that values the mini-mill steelmaker at about US$4.77 billion. Gerdau Ameristeel shares surged $3.89 or 51.1 per cent to $11.50.

Shares in aircraft and rail manufacturer Bombardier Inc. (TSX:BBD.B) ran ahead 22 cents to $4.83 as the company reported it had a US$153-million profit in the first quarter. That came in at eight cents a share, a cent better than analysts had forecast.

Bombardier's revenue dropped to US$4.2 billion in quarter, down $300 million from the year-earlier period but also slightly better than analyst estimates.

Shares in Alimentation Couche-Tard (TSX:ATD.B) rose 65 cents to C$19.89 after the convenience store operator said it was more confident than ever that shareholders of Casey's General Stores will accept its US$1.9-billion offer to add the Iowa-based chain to its vast network.

The Quebec-based convenience store operator started its tender offer Wednesday, worth US$36 per share in cash -- which is being opposed by Casey's board of directors.

Women's wear retailer Reitmans Canada Ltd. (TSX:RET.A) credits a stronger loonie as well as increased sales for a whopping 111.1 per cent improvement in fiscal first-quarter profits to $16.5 million. The retailer also said it is increasing its dividend by two cents or just over 11 per cent to 20 cents for an annual dividend of 80 cents. Its shares rose 14 cents to $18.40.

Goldcorp Inc. (TSX:G) has agreed to sell the San Dimas gold-silver mine in Mexico to Mala Noche Resources Corp. (TSXV:MLA) in a cash-and-share deal valued at US$500 million. Goldcorp would end up owning about 30 per cent of the junior mining company and its shares were up 30 cents at $45.91.