(Reuters) - Futures linked to Canada's main stock index rose on Thursday as crude and metal prices gained, a day after softer U.S. inflation data reinforced hopes for a rate cut by the Federal Reserve next month.
September futures on the S&P/TSX index were up 0.2% at 6:08 a.m. ET (10:08 GMT). The composite index closed higher the previous day after in-line U.S. CPI data.
Wall Street futures were also up after the S&P 500 registered its fifth winning round in the previous session. [.N]
The Canadian materials sector was poised to rise after gold prices climbed against a weaker U.S. dollar and Treasury yields, while gains in copper prices also lent support. [GOL/] [MET/L]
The energy sector was expected to inch up as oil prices gained on higher possibility of a U.S. rate cut that can boost economic activity and fuel consumption. [O/R]
Investors will now focus on the U.S. retail sales numbers and initial jobless claims data, due at 8:30 a.m. ET, that could further support the narrative of a downward inflationary trend.
This week's favourable consumer prices and producer prices readings pushed traders to price in a higher chance of a 25-basis point (bps) rate cut over that of 50 bps.
Amid worries of a slowdown in the world's biggest economy, a rate cut would offer fresh impetus and boost demand for riskier assets such as equities.
In corporate news, billionaire investor William Ackman said he acquired new stakes in sportswear company Nike and investment management firm Brookfield in the second quarter.
COMMODITIES
Gold futures: $2459.40; +0.48% [GOL/]
US crude: $77.41; +0.6% [O/R]
Brent crude: $80.23; +0.6% [O/R]
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($1 = 1.3708 Canadian dollars)
(Reporting by Nikhil Sharma; Editing by Shreya Biswas)
