Toronto stock market likely to inch higher on stronger commodities prices

TORONTO – The Toronto stock market seems prepared to move higher as commodities strengthen and several major U.S. companies report their earnings.

The Canadian dollar was up 0.05 of a cent 96.07 cents US.

Dow Jones industrial futures are up eight points to 15,424 in light trading. S&P futures have added 0.8 points to 1,678.30. Nasdaq futures are up 2.75 points to 3,075.75.

Shares of Barrick Gold (TSX:ABX) are expected to take a hit after a Chilean appeals court ruled against the world’s largest gold mining company on Monday. The court ruled in favour of Chilean Indians who accuse Barrick of contaminating their water downstream and creating more doubts about the future of the world’s highest gold mine.

August bullion rose $5.80 to US$1,289.30 an ounce.

Oil is also up with the August contract on the Nymex ahead 64 cents to US$106.96 a barrel.

North American stock markets are likely to hold back from any major shifts before the testimony from U.S. Federal Reserve chairman Ben Bernanke on Wednesday.

A day after Citigroup easily topped Wall Street expectations, Goldman Sachs did the same on Tuesday. The global investment and securities firm doubled its quarterly profits for the second quarter, and it posted revenue of $8.61 billion.

Coca-Cola is reporting declining profits and weak volume growth for the quarter, while other major names like Johnson & Johnson, CSX and Yahoo are also reporting earnings Tuesday.

Caution appeared to be the watchword in Tuesday trading in Europe. The FTSE 100 index of leading British shares was up 0.2 per cent at 6,598 while Germany’s DAX fell 0.3 per cent at 8,213. The CAC-40 in France was 0.4 per cent lower at 3,862.

Earlier in Asia, South Korea’s Kospi fell 0.5 per cent to 1,866.36 while Hong Kong’s Hang Seng was flat at 21,312.38. China’s Shanghai Composite Index rose 0.3 per cent to 2,065.72.