TORONTO - The Toronto stock market closed higher Thursday as investors took in some reports that gave them cause to feel better about prospects for the global economy.

The S&P/TSX composite index was 36.1 points higher at 11,433.37, up for a third day with gains led by mining and energy stocks.

The TSX Venture Exchange was down 8.47 points at 1,353.01, while the Canadian dollar moved up 0.35 of a cent to 95.79 cents US.

The International Monetary Fund raised its 2010 world growth forecast to 4.6 per cent from 4.2 per cent in April and boosted estimates for the United States, China and Canada.

That was good news "particularly because a lot of the worries over the last two months had been a big slowdown in China, a big slowdown in Europe, the wheels starting to fall off the U.S.," observed Colin Cieszynski, market analyst at CMC Markets Canada.

"What we're into is kind of a slow-growth phase where the wheels aren't falling off but we're not knocking the doors down either."

The IMF also warned that the European debt crisis could pose a risk to global growth but said a return to recession was unlikely.

The gain on the TSX followed two strong triple-digit advances. The Toronto market ran up almost 200 points on Wednesday alone after a strong profit forecast by State Street bank in the U.S. encouraged buyers to pick up stocks that have been beaten down recently because of worries the global recovery is losing traction.

"We're seeing very good strength because when you look back to the last couple of months, every time you had a big rally like yesterday's, you can see the markets just turn around and see this selling just start the next day," Cieszynski said Thursday.

"So it's shown a real improvement in confidence and sentiment today."

The TSX energy sector was ahead 1.22 per cent as the August crude contract on the New York Mercantile Exchange ran ahead $1.37 to US$75.44 a barrel after the U.S. Energy Department's Energy Information Administration reported American inventories fell by five million barrels.

On Wednesday, The American Petroleum Institute reported that U.S. crude inventories had plunged 7.3 million barrels last week, much more than the drop of 3.5 million barrels forecast in an analyst survey by Platts, the energy information arm of McGraw-Hill Cos. Inventories of gasoline and distillates also fell, the API said.

On the TSX, Canadian Natural Resources (TSX:CNQ) climbed 87 cents to $36.69 while Suncor Energy (TSX:SU) gained 38 cents to $32.88.

The base metals sector rose 1.85 per cent as the September copper contract on the Nymex lost early traction and was little changed at US$3.0155 a pound. Teck Resources (TSX:TCK.B) was ahead 79 cents at C$34.44, while Lundin Mining (TSX:LUN) was up 17 cents at C$3.65.

TSX gold stocks were the biggest decliners as economic optimism helped send the August bullion contract in New York down $2.80 to US$1,196.10 an ounce. Barrick Gold Corp. (TSX:ABX) faded $1.56 to C$44.41 and Goldcorp Inc. (TSX:G) lost $1.05 to C$42.30.

New York markets were higher as a positive reading on jobless insurance claims helped to compensate for early reports from U.S. retailers which showed sluggish June sales and shoppers buying mostly deeply discounted clothing amid escalating job worries.

New York's Dow Jones industrial average moved up 120.71 points to 10,138.99 as the U.S. Labour Department reported that claims for jobless aid dropped by 21,000 to a seasonally adjusted 454,000. The decline takes claims to their lowest level since early May, erasing the increases of the last two months.

"There have been a number of special factors skewing the data," observed BMO Capital Markets senior economist Jennifer Lee -- for example, temporary hires for the U.S. census and uncertainty over the number of layoffs from the offshore oil drilling moratorium.

"The latest week is certainly reassuring but a few more weeks of improvement would be more comforting to make a more sweeping statement on the state of the job market," Lee said. "But this latest week does come as a relief."

The Nasdaq composite index rose 15.93 points to 2,175.4, while the S&P 500 index climbed 9.98 points to 1,070.25.

In corporate news, shares in telecom equipment maker DragonWave Inc. (TSX:DWI) tumbled 89 cents, or 15.24 per cent, to $4.95 after saying it expects lower second quarter revenue. Its key customer has been American firm Clearwire. But it said Thursday that three-quarters of its projected $25 million in revenue in the second fiscal quarter will come from customers other than Clearwire. Revenue in the most recent quarter was $48.7 million.

Cott Corp., Canada's biggest soft-drink maker, is acquiring a major American private-label juice company for more than half a billion dollars. Cott (TSX:BCB) has signed an agreement to acquire privately owned Cliffstar Corp., based in Dunkirk, N.Y. near Buffalo. Cott shares rose 19 cents to $6.19.

Cogeco Cable Inc. (TSX:CCA), Canada's fourth-largest cable company, reported quarterly profit of $31.2 million, down slightly from $32.4 million a year ago. Revenue came in at $319.3 million, up from $305 million in the year-earlier period. Its shares declined 58 cents to $34.17.

Drugmaker Merck & Co. said Thursday it is shutting down eight manufacturing plants and eight research sites around the world including one in Montreal, in the latest phase in its strategic pruning of operations. The moves, which include consolidating some offices, are part of ongoing consolidation following Merck's acquisition of Schering-Plough Corp. last November. In New York, Merck shares gained 43 cents to US$35.86.