TORONTO (Reuters) - Toronto's main stock index pushed higher yesterday, helped by strong US and Canadian trade data, as well as a sharp rise in natural gas prices, which drove oil and gas producers higher.

Gas futures jumped eight percent on the New York Mercantile Exchange, spurred by cold weather forecasts and reports of shrinking inventories.

In Toronto, Suncor Energy rose 3.3 percent to C$36.80, while Talisman Energy gained 2.9 percent to C$18.02. The index's energy sector ended the session up 1.79 percent.

The S&P/TSX composite index closed 85.35 points, or 0.75 percent, higher at 11,464.57. Eight of its 10 subgroups rose on the day.

For the second straight day, the index rose sharply in the final hours of trading, which is a sign that cautious investors are gaining confidence at current levels, said Elvis Picardo, analyst at Global Securities in Vancouver.

"It does seem that optimism is getting the upper hand here because you're seeing the market able to hold on to the gains as we go into the close," he said.

That confidence was helped by data showing that Canada unexpectedly returned to a trade surplus in October after three months of deficits , and that the US trade deficit shrank 7.6 percent in the month as a weak US dollar boosted exports.

Two Canadian retailers showed sales growth yesterday despite the lingering recession as consumers spent on necessities.

Empire Co Ltd , which owns Sobeys supermarket unit, Canada's No.2 grocery chain, and Dollarama Inc, the country's largest operator of dollar stores, both reported higher sales in stores opened at least a year and revenues that topped analysts' estimates.

The improved sales came as recession-weary consumers continued to spend money on much-needed items such as food, toiletries and other household items.

"Although consumer confidence is picking up a bit, there is still a high level of unemployment...and so people don't really feel like spending money yet.

"Certainly there is that uncertainty that is overhanging things," said Bill Chisholm, a retail analyst at MacDougall, MacDougall and McTier.

"There is still this trading down to discount levels."