TORONTO – The Toronto stock market looked set for a slightly higher start to the session Tuesday amid higher commodity prices.

The Canadian dollar was down 0.26 of a cent to 99.31 cents US as traders took in a statement by the G7 group of leading industrialized countries, including Canada, which affirmed their commitment to exchange rates determined by markets and not government policy.

It also warned that volatile movements in exchange rates can adversely hit the global economy.

The statement came out prior to a weekend meeting of the Group of 20 finance ministers where exchange rates and the threat of a “currency war” are expected to feature heavily.

Attention has centred recently on the Japanese yen, which dropped Monday to its lowest level against the U.S. dollar since May 2010. The Japanese government has not directly intervened to get the value of the yen down. But it has set in motion a string of economic policies, such as a higher two per cent target for Japanese inflation, that many in the markets think will lead to more money being created in Japan.

One parallel effect of that policy has been a rise in the euro, which threatens to make the region’s exports more expensive and hinder Europe’s economic recovery.

U.S. futures were little changed as traders looked ahead to President Barack Obama’s state of the union address Tuesday evening. The Dow Jones industrial futures dipped five points to 13,919, the Nasdaq futures were down 3.2 points to 2,767.2 while the S&P 500 futures lost 0.5 of a point to 1,512.5.

Oil prices advanced, adding to Monday’s gain of more than $1 due largely to a weaker U.S. dollar. The March contract on the New York Mercantile Exchange gained 27 cents to US$97.30 a barrel.

April gold bullion on the Nymex edged 40 cents higher to US$1,649.50 an ounce while March copper in New York moved up one cent to US$3.74 a pound.

As the U.S. fourth-quarter earnings season winds down, Coca-Cola reported that its profit rose 13 per cent to $1.87 billion, or 41 cents per share, as global sales volume at the world’s biggest beverage company improved three per cent. Not including one-time items, The Coca-Cola Co. earned 45 cents per share, a penny better than expectations. Revenue rose four per cent to $11.46 billion, which was slightly less than the $11.53 billion analysts expected and its shares were down 0.4 per cent in pre-market trading in New York.

In Canada, the corporate earnings season picks up momentum this week.

Novagold Resources Inc. (TSX:NG) said Tuesday that the spinoff of its copper assets last year and other factors resulted in in a $67.6-million net profit for the 2012 financial year, or about nine cents per share. The Vancouver-based company, which is in the development phase and not producing sales revenue, had $253 million in cash and equivalents when the year ended Nov. 30.

Pipeline company TransCanada (TSX:TRP) also posts quarterly results during the session.

Over the rest of the week, traders will take in reports from resource giants including Talisman Energy (TSX:TLM), Cenovus Energy (TSX:CVE), gas giant EnCana Corp. (TSX:ECA) and Barrick Gold (TSX:ABX). Outside of the resource sector, Sun Life Financial (TSX:SLF), and telecoms Telus Corp. (TSX:T) and Rogers Communications (TSX:RCI.B) will also hand in results.

Despite the G7 statement, the yen remained stable as analysts observed that any country could claim that its loose monetary policy was used to help the domestic economy, not set the interest rate. There is little to stop the Japanese central bank, for example, from continuing to pursue its ultra-loose monetary policies.

Tokyo’s Nikkei 225, which closed before the G-7 statement was released, rallied 1.9 per cent Tuesday on the continued weakness of the yen.

Markets were unfazed by a nuclear test conducted by North Korea on Tuesday. Pyongyang said it successfully detonated a miniaturized nuclear device at a northeastern test site.

South Korea’s Kospi fell 0.3 per cent while benchmarks in Indonesia, Thailand and India rose. In Australia, the benchmark S&P/ASX 200 finished nearly unchanged.

Markets in mainland China, Hong Kong, Singapore, Malaysia and Taiwan were closed for Lunar New Year holidays.

European bourses were positive as London’s FTSE 100 index and the Paris CAC 40 gained 0.4 per cent while Frankfurt’s DAX inched up 0.03 per cent.