Dec 27 (Reuters) - Futures for Canada's main stock index were little changed on Friday after interest rate cut bets came under pressure due to tight labour market data in the U.S., while higher commodity prices are expected to lift the market.
June futures on the S&P/TSX index were down 0.1% at 6:58 a.m. ET (10:58 GMT). The index looks set for a weekly decline.
Data this week showed a cooling U.S. consumer price index, prompting market participants to swiftly price in at least two rate cuts this year. However, Federal Reserve officials saying rates may need to stay higher for longer and a report showing a tight labour market have led to another shift in expectations.
Markets are now fully pricing in one U.S. rate cut in November, with a 68% chance of a cut in September - down from 73% after the softer U.S. inflation data. 0#FEDWATCH
Meanwhile, investors expect the Bank of Canada to begin rate cuts in June or July, with next Tuesday's inflation reading as a key input. 0#BOCWATCH
The energy (.SPTTEN), opens new tab and materials (.GSPTTMT), opens new tab sectors are expected to move up, supported by a rise in commodity prices.
The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE), opens new tab ended up 15.07 points, or 0.1%, at 22,299.83 on Thursday.
Dow e-minis were down 0.03% at 6:58 a.m. ET, while S&P 500 e-minis were down 0.02% and Nasdaq 100 e-minis were 0.07%.
COMMODITIES AT 6:58 a.m. ET
Gold futures : $2,389.9; +0.2%
US crude : $79.4; +0.2%
Brent crude : $83.47; +0.2%
($1= C$1.3639)
Reporting by Khushi Singh in Bengaluru; Editing by Ravi Prakash Kumar
