Jan 23 (Reuters) - Futures for Canada's main stock index edged higher on Tuesday, aided by higher metal prices, while investors remained focused on the Bank of Canada's meeting on Wednesday for clues about the timing of interest rate cuts.
March futures on the S&P/TSX index were up 0.3% at 7:16 a.m. ET (12:16 GMT), while their U.S. peers were mixed.
Materials shares are expected to advance as gold prices rebounded from the previous session, helped by a weaker U.S. dollar. Copper and other industrial metals advanced on hopes that top metals consumer China would announce more stimulus to boost its economy.
Oil prices eased slightly as traders weighed geopolitical tensions in several regions with supply outages in the U.S. and returning production in Libya.
Investors are awaiting the monetary policy meeting of the Bank of Canada on Wednesday for the central bank's direction on interest rate cuts.
"The BoC is widely expected to keep policy rates unchanged at 5% at the first meeting of 2024 on Wednesday," Citigroup analysts said in a note.
"We expect an overall hawkish meeting, with officials emphasizing a commitment to 2% inflation and pushing back on expectations for imminent rate cuts, but also expressing more confidence than in previous meetings that rates are appropriately restrictive."
Money market participants are now pricing in a 22.4% chance of a rate cut in March and a 50.2% chance in April. 0#BOCWATCH
The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE), opens new tab ended up 17.78 points, or 0.1%, at 20,924.30 on Monday, boosted by gains in financials and real estate.
Meanwhile, railroad operator Candian National Railway (CNR.TO), opens new tab is expected to report its fourth-quarter results later in the day.
Wood products firm West Fraser (WFG.TO), opens new tab announced the closure of its Fraser Lake sawmill, which is expected to impact 175 employees and the company's production capacity.
COMMODITIES AT 7:16 a.m. ET
Gold futures : $2,025.8; +0.2%
US crude : $74; -1.0%
Brent crude : $79.23; -1.0%
Reporting by Purvi Agarwal in Bengaluru; Editing by Ravi Prakash Kumar
