Feb 5 (Reuters) - Futures for Canada's main stock index dipped on Monday, tracking lower commodity prices, as investors' hopes for an early rate cut were further tempered by Federal Reserve Chair Jerome Powell's recent comments.
March futures on the S&P/TSX index were down 0.3% at 7:11 a.m. ET (12:11 GMT).
Oil prices steadied on Monday, following sharp falls last week after the U.S. pledged to launch further strikes on Iran-backed groups in the Middle East and dampened hopes of swift rate cuts by the Federal Reserve.
Material-related stocks could extend declines from the previous week as gold prices slipped to a one-week low on a stronger dollar and higher bond yields. Copper prices hit a two-week low as Chinese demand concerns also weighed.
In an interview on Sunday, Fed Chairman Jerome Powell said the U.S. central bank can be "prudent" in weighing rate cuts, with a strong economy allowing policymakers time to build confidence inflation will continue falling.
Futures on Wall Street traded in the red on Monday, pressured by rising Treasury yields.
A January reading of non-manufacturing survey data by the Institute of Supply Management (ISM) from the U.S. is due at 10:00 a.m. ET that could provide more insights on the strength of American economy.
Investors will also look forward to key domestic employment data due on Friday to gauge the timing of the Bank of Canada's rate cuts.
The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE), opens new tab ended 0.2% lower on Friday, logging a weekly decline of 0.2% after stronger-than-expected U.S. jobs data weighed on sentiment.
In corporate news, analytic solutions provider TMX Corp (X.TO), opens new tab is set to report its fourth-quarter results after the bell on Monday.
Brokerage RBC downgraded oil and gas refiner Parkland Corp (PKI.TO), opens new tab to "sector perform" from "outperform."
COMMODITIES AT 7:11 a.m. ET
Gold futures : $2,033.7; -0.5%
US crude : $71.66; -0.9%
Brent crude : $76.82; -0.7%
Reporting by Purvi Agarwal in Bengaluru; Editing by Ravi Prakash Kumar
