March 12 (Reuters) - Futures tied to Canada's main stock index rose on Wednesday in the run-up to the Bank of Canada's interest rate decision later in the day, which is expected to result in a quarter-point cut.
March futures on the S&P/TSX index were up 0.24% at 6:43 a.m. ET (1044 GMT).
The BoC is widely expected to lower its benchmark rate to 2.75% to mitigate against U.S. tariffs, with traders expecting at least two more cuts by the end of 2025 to support the economy amid a looming trade war with the United States.
U.S. President Donald Trump on Tuesday backed off from plans to double the trade duties on Canadian steel and aluminum products, following Ontario province's decision to suspend a 25% surcharge on electricity exports to the U.S. states of Minnesota, Michigan and New York.
The chaos around the implementation of Trump's tariffs has increased the risks of recession for the U.S., Mexico and Canada.
The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE), ended 0.5% lower as investors prepared for a slowdown in economic growth due to tariff uncertainties.
In commodities, oil prices edged up on Wednesday as a weaker U.S. dollar extended support. However, gains were capped by mounting fears of a U.S. economic slowdown and the impact of tariffs on global economic growth.
Gold prices were mostly flat, with market attention on Trump's tariff policies and a key U.S. inflation report due later in the day.
The U.S. Consumer Price Index figure for February, set to be released at 8:30 a.m. ET, is expected to show inflation cooling from the previous month.
In corporate news, Step Energy Services (STEP.TO), missed fourth-quarter revenue expectations on Tuesday.
FOR CANADIAN MARKETS NEWS, CLICK ON CODES:
TSX market report
Canadian dollar and bonds report CA/
Reuters global stocks poll for Canada ,
Canadian markets directory
($1 = 1.4435 Canadian dollars)
Reporting by Nikhil Sharma; Editing by Vijay Kishore
