March 27 (Reuters) - Futures for Canada's main stock index inched higher on Wednesday, tracking an uptick in precious metals prices, though weaker crude oil limited gains.
Futures on the S&P/TSX index were up 0.2% at 6:56 a.m. ET (1056 GMT).
Gold and silver prices crept higher with investors exercising caution ahead of a crucial U.S. inflation report due later in the week.
The February data for U.S. personal consumption expenditure price index, the Federal Reserve's preferred inflation gauge, is due on Friday, when the U.S. and Canadian markets would be closed for the Good Friday holiday.
The data could offer clues on the timing for the Fed's first interest rate cut, with traders widely expecting its first reduction of 25 basis points in June. 0#FEDWATCH
But according to economists and analysts, the Bank of Canada is likely to move ahead of the Fed on its first rate cut, as tepid economic growth and cooling inflation are priming up conditions to ease borrowing rates sooner.
Meanwhile, oil prices fell for a second day, dropping more than 1%, after data showed a sharp rise in U.S. stockpiles and signs that the OPEC+ producer group is unlikely to change its output policy at a technical meeting next week.
Company-wise, brokerage BMO upgraded its rating on Lundin Mining (LUN.TO), opens new tab to "outperform" from "market perform", while TD Securities lifted its recommendation on Vermilion Energy (VET.TO), opens new tab to "buy" from "hold".
Canacol Energy (CNE.TO), opens new tab said it would discontinue dividend payout as the oil producer focuses on addressing concerns regarding debt obligations and liquidity.
The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE), opens new tab ended lower on Tuesday, dragged by losses in heavy-weight energy stocks.
COMMODITIES AT 6:56 a.m. ET
Gold futures : $2,200.8; +0.6%
US crude : $80.96; -0.8%
Brent crude : $85.52; -0.9%
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($1= C$1.3591)
Reporting by Johann M Cherian in Bengaluru; Editing by Shilpi Majumdar
