Oct 16 (Reuters) - Futures tied to Canada's resource-heavy main stock index edged higher on Friday as rising metals prices helped sentiment, while investors weighed Bank of Canada Governor Tiff Macklem's warning on persistent energy-price pressures on interest rates.
December futures on the S&P/TSX index rose 0.4% at 6:45 a.m. ET (1045 GMT).
The materials sector (.GSPTTMT), is poised to extend gains as gold and silver prices rise
Macklem said Canada has not raised interest rates yet but the longer elevated energy prices go on "the harder that gets"
The BoC is not expected to raise interest rates at its next monetary policy decision announcement on October 28, but money markets are pricing in a rate hike of 25 basis points in December, according to data compiled by LSEG
Data on the day showed that Canadian home sales extended their decline in September, after a drop in August, as higher mortgage rates and expectations of a rate hike weighed on demand
Oil prices eased but were set for weekly gains on Middle East supply concerns and a larger-than-expected US crude draw, despite weaker diesel margins
Brent crude futures were down 0.12%, but still hovered above the benchmark $100 a barrel, keeping focus on the energy sector (.SPTTEN), which has climbed over 58% this year.
The TSX closed at a three-week high on Thursday and was on track to post gains in the holiday-shortened week.
Receding global bond yields helped support sentiment, despite hotter-than-expected US inflation data and renewed concerns over AI-related debt financing
Global markets also stabilized after a sharp tech-led selloff in the previous session
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Reporting by Anand Gopal in Bengaluru; Editing by Shreya Biswas
