JOB REPORT ADDS TO MARKET WORRIES.

The Toronto stock market tumbled Friday as weak U.S. jobs data added to worries that the global economy is slowing faster than previously thought.

The S&P/TSX composite index fell 157.07 points to 11,659.65 as the U. S. Labour Department reported that the American economy only managed to crank out 80,000 jobs last month, below already modest expectations for 90,000 positions.

“It’s more than the jobs report,” said Patrick Blais, managing director and portfolio manager at Manulife Asset Management.

“A number of items are coming to the forefront: European challenges seem to be resurfacing, (Spanish bond yields are moving back higher), the market is coming to the realization that global growth will be significantly lower than expected — probably not only for this year but looking into the next year.”

The Canadian dollar was down US0.41¢ to US98.17¢ as traders also took in tepid domestic job creation figures from Statistics Canada. The agency said 7,300 jobs were added in June, slightly better than the limited gain that had been expected.

The TSX Venture Exchange shed 15.1 0 points to 1,211.35.

The Dow Jones industrials dropped 124.20 points to 12,772.47.

The Nasdaq composite index lost 38.79 points to 2,937.33 and the S&P 500 index was off 12.90 points to 1,354.68.

Markets had already been set for a weak session after International Monetary Fund Managing Director Christine Lagarde said Friday that the IMF is cutting its forecast for global economic growth in a quarterly assessment to be released later this month.

The jobs report capped a disappointing week which included worse than expected readings on the American manufacturing and service sectors. But the TSX managed to end the week with a gain of 63 points.

On the TSX, the energy sector fell 2.21% as crude prices fell sharply despite interest rate cuts announced Thursday by the European and Chinese central banks. The August crude contract fell $2.77 to US$84.45 a barrel. Suncor Energy gave back $1.04 to $29.36 and Canadian Natural Resour

ces was down 96¢ at $26.58. The base metals sector fell 3.75% as diminished demand prospects also pushed metal prices lower with the September copper contract on the Nymex off eight cents at US$3.41 a pound. Teck Resources lost $1.04 to $31.92 and First Quan

tum Minerals was 89¢ lower at $18.63. The gold sector dropped about 2.4% as bullion fell $30.50 to US$1,578.90 an ounce.

Kinross Gold Corp. faded 40¢ to $8.41 and Goldcorp Inc. was off 78¢ to $38.52. Industrial stocks also weakened with

Bombardier 16¢ lower at $4.04.