June 9 (Reuters) - Futures tracking Canada's blue-chip stocks edged higher on Tuesday as investors took comfort from signs of de-escalation in hostilities in the Middle East, while keeping an eye on the Bank of Canada's rate decision due on Wednesday.
June futures on the S&P/TSX index were up 0.4% at 6:39 a.m. ET (1039 GMT).
Iran and Israel halted attacks on each other, but caution lingered as talks between Washington and Tehran have yet to yield a lasting deal and the Strait of Hormuz remains closed.
Spot gold and silver rose 0.1% and 0.4%, respectively, following the news.
Oil prices fell around 2%, erasing most of the previous session's gains, as easing supply concerns weighed, though both Iran and Israel warned they could resume hostilities.
Investors awaited a Bank of Canada interest rate decision on Wednesday. The central bank was expected to leave its benchmark interest rate on hold at 2.25% for a fifth straight meeting, according to a majority of economists polled by Reuters.
Canada's S&P/TSX Composite Index (.GSPTSE), clawed back some of the previous session's sharp decline on Monday, with energy and technology shares leading gains.
Meanwhile, Canadian Prime Minister Mark Carney is pushing to diversify trade beyond the United States, but Canada's appeal to global partners still hinges on tariff-free access to the U.S. market through the USMCA agreement.
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Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Shailesh Kuber
