Futures linked to Canadian stocks edged higher on Wednesday, supported by higher crude prices, and were set to regain previous session's lost ground after an unexpected rise in domestic inflation diminished hopes of a July rate cut by the Bank of Canada (BoC).

September futures on the S&P/TSX index were up 0.08% at 06:31 a.m. ET (1031 GMT).

Wall Street futures were also up on Wednesday, as Nasdaq extended its rally from the previous session on the back of robust gains in chipmaker Nvidia and other tech megacaps.

The energy sector was set for a positive start as oil futures, rose, hovering around a two-month high, due to forecasts of an eventual inventory drawdown during the third quarter and risks related to the Middle East conflict.

Copper prices rose on firm dollar but weak demand in China restricted gains. On the other hand, gold prices fell ahead of the key U.S. inflation data due later this week.

A hotter-than-expected annual Canadian inflation data on Tuesday dwindled hopes of a second interest rate cut by the BoC at its next policy meeting on July 24.

Markets now see the Canadian central bank keeping rates steady in July, while anticipating roughly two 25-basis-point rate cuts later this year.

However, there will be another set of inflation readings, coupled with GDP figures for May and the jobs report for June, before the BoC can make a decision.

In corporate news, Onex Corp- backed WestJet Airlines said a union representing its maintenance engineers rejected its new offer and served a second strike notice, just days after the union called off a strike by agreeing to return to the bargaining table.

 

COMMODITIES

Gold: $2309.33; -0.42%

US crude: $81.57; +0.92%

Brent crude: $85.69; +0.80%

 

FOR CANADIAN MARKETS NEWS, CLICK ON CODES:

TSX market report

Canadian dollar and bonds report

Reuters global stocks poll for Canada

Canadian markets directory ($1 = 1.3670 Canadian dollars) (Reporting by Nikhil Sharma in Bengaluru; Editing by Vijay Kishore)