* TSX closes up 43.86 points, or 0.29 percent, to 15,149.14
* Seven of 10 main groups end higher
By Fergal Smith
TORONTO, July 11 (Reuters) - Canada's main stock index rose on Tuesday as higher commodity prices boosted the shares of resource companies, while investors awaited the Bank of Canada's interest rate decision on Wednesday which could produce the first increase since 2010.
Money markets are nearly fully priced for a rate hike, data from the overnight index swaps market shows. BOCWATCH
"It sends a clear message to international investors that the Canadian economy is doing fine," said Ian Nakamoto, equity specialist at MacDougall, MacDougall & MacTier, a division of Raymond James.
"Obviously, the Bank of Canada would not be raising rates if it thought it would cause a downturn in house prices."
Investors have worried that a downturn in the country's housing market, which had been red-hot in cities such as Toronto and Vancouver, could weigh on the economy.
Domestic data showed housing starts rose more than expected in June as construction plans in and around Toronto remained strong. Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 43.86 points, or 0.29 percent, to 15,149.14.
It was led by a 1.3 percent gain for the energy group as oil prices climbed. Suncor Energy SU.TO rose 2.0 percent to C$37.26, while Canadian Natural Resources CNQ.TO advanced 1.5 percent to C$37.50.
U.S. crude oil futures CLc1 settled 64 cents higher at $45.04 a barrel on reports showing forecast cuts in U.S. oil production and a decline in European product stockpiles. materials group, which includes precious and base metals miners and fertilizer companies, added 1.2 percent.
Barrick Gold ABX.TO gained 0.9 percent to C$20.55 and Teck Resources Ltd TECKb.TO climbed 3.8 percent to C$24.55.
Gold futures GCc1 rose 0.2 percent to $1,214.2 an ounce, while copper prices CMCU3 advanced 0.9 percent to $5,877 a tonne. GOL/ MET/L
Seven of the index's 10 main groups rose. It included a 0.1 percent gain for the financials group .SPTTFS , which accounts for about 30 percent of the index.
Shares of timber producers rose as wildfires in the western province of British Columbia disrupted timber and mining operations and forced thousands from their homes. on the upside, shares of Alimentation Couche Tard ATDb.TO rose 1.4 percent to C$60.15 after TD Securities raised its target to C$78 from C$75. RCH/CA