TORONTO - The slower pace of the American economic recovery continued to discourage buyers on the Toronto stock market Wednesday.

The S&P/TSX composite index drifted 41.47 points lower to 13,241.45 while the TSX Venture Exchange lost 26.67 points to 1,977.35.

Pessimism deepened after U.S. Federal Reserve chairman Ben Bernanke acknowledged in a late-day speech Tuesday that U.S. economic growth remained "frustratingly slow."

However, he said nothing to suggest the Fed was about to embark on any new stimulus measures to shore it up.

"We've really had kind of a slew of weak economic data disappointing investors and that's kind of a reminder for everyone that this isn't a typical recovery, it's a half-speed recovery with periods of slowdown," said Jeff Bradacs, senior investment analyst at Manulife Asset Management.

"And you look at (the economic downturn) and this wasn't caused by higher interest rates but it was caused by an over-leveraged consumer, a housing bubble and that's going to take time to work off."

The Canadian dollar was lower against the greenback as Bernanke's comments discouraged risk. The loonie declined 0.32 of a cent to 102.19 cents US.

The TSX found support from the energy sector, which moved up 0.7 per cent as oil prices shook off early losses as a meeting of the Organization of Petroleum Exporting Countries broke up with an announcement that current production levels will be maintained.

There had been wide speculation that the cartel would hike production in order to lower the high prices that are blamed for hobbling the economic rebound.

One OPEC delegate to the meeting in Vienna said that Iran, Venezuela and Algeria refused to consider an increase, which had been backed by Saudi Arabia.

The July oil contract on the New York Mercantile Exchange gained $1.78 to US$100.87 a barrel. Suncor Energy (TSX:SU) gained 37 cents to C$39.22 and Canadian Natural Resources (TSX:CNQ) was ahead 57 cents at $40.34.

Most other sectors fell.

Demand concerns pushed metal prices lower with the July copper contract on the Nymex down six cents to US$4.09 a pound. The base metals sector was the weakest group, down 1.24 per cent with Quadra FNX Mining (TSX:QUX) down 20 cents to C$13.77 while Teck Resources (TSX:TCK.B) declined 58 cents to $46.67.

Major Drilling Group International Inc. (TSX:MDI) shares fell 75 cents to $13 after it reported a near tripling of its latest quarterly profit to $9.4 million, helped by rising global demand for the company's mine drilling services. Revenue for what was the company's fourth quarter totalled $137.3 million, up from $97.4 million.

Gold stocks also declined as bullion prices retreated, with the August contract in New York off $9 at US$1,534.30 an ounce. Barrick Gold Corp. (TSX:ABX) faded 75 cents to C$43.49 and Goldcorp Inc. (TSX:G) declined 36 cents to $46.46.

Investors have been discouraged by a string of U.S. data suggesting the economy is slowing faster than thought, including reports showing slower expansion in manufacturing, faltering consumer confidence and softer than expected first quarter growth.

Particularly disappointing was Friday's payrolls figures, showing only 54,000 jobs created in May and the unemployment rate back up at 9.1 per cent.

Investors also worry about slowing conditions in China, where the government is trying to cool the economy to deal with high inflation, especially high food prices.

New York markets were little changed as traders also looked to the mid-afternoon release of the Fed's so-called "Beige Book." The report offers anecdotal commentary from business owners across the Fed's 12 districts giving investors a detailed illustration of an economic recovery Bernanke called "uneven."

The Dow Jones industrial average edged up 9.5 points to 12,080.31.

The Nasdaq composite index was off 9.57 points to 2,691.99 while the S&P 500 index added 0.51 of a point to 1,285.45.

In other corporate news, the Ontario Securities Commission said Wednesday that it is investigating matters related to Sino-Forest Corp. (TSX:TRE). The company's stock has been hammered over the last week since Muddy Waters Research levelled fraud accusations at the Chinese timberland company. Its stock was ahead 52 cents at $4.53 after trading at $19.27 last Tuesday.

Bombardier Transportation (TSX:BBD.B) says it has been awarded a $258-million supply contract as part of a broader $1.04-billion agreement between the Queensland government in Australia and the GoldLinQ consortium, which are working together on a light rail transit system. Bombardier shares were down two cents at $6.93.

Westport Innovations Inc. (TSX:WPT) is stepping up its presence in the European market with an agreement to buy fuel system provider Emer S.p.A., based in Italy, for about US$117.2 million, including debt. Westport shares declined $2.24 to $20.60.

Nordion Inc. (TSX:NDN) handed in a US$7.5-million loss for the latest quarter, 92 per cent lower than a year earlier as the company's medical isotopes business continued to recover. Revenue at the Ottawa-based company, formerly a subsidiary of MDS Inc., was $68.2 million, up 32 per cent from a year ago. Its shares were down seven cents at $10.09.

Transcontinental (TSX:TCL.A) shares jumped 76 cents to $14.85 after the printing giant beat expectations as its second-quarter adjusted profit increased 18 per cent to $40.1 million. New printing contracts boosted revenues to $514.7 million.

Earlier in Asia, Japan's Nikkei 225 index edged up less than 0.1 per cent while Hong Kong's Hang Seng fell 1.1 per cent.

Mainland Chinese shares advanced, with the benchmark Shanghai Composite Index up 0.2 per cent and the Shenzhen Composite Index rising 0.3 per cent.

European markets were all in the red with London's FTSE 100 index down 0.65 per cent, Frankfurt's DAX lost 0.62 per cent and the Paris CAC 40 declined 0.43 per cent.