Canadian stock index futures edged up on Monday, tracking global stock markets, as a drop in oil prices eased inflation worries and lifted investor sentiment.
Futures tracking the S&P/TSX Composite index (SXFc1) were up 0.2% at 6:58 a.m. ET.
Oil prices ICEEUR:BRN1!, NYMEX:CL1! fell 0.6% after OPEC+ agreed to further raise output targets from August, while exports through the Strait of Hormuz continued to recover, increasing global supply prospects.
Expectations for a Federal Reserve rate hike this year have eased after last week's softer-than-expected jobs report, signaling a cooling labor market.
Traders are currently pricing in just one U.S. rate hike by the end of this year, according to LSEG data.
Meanwhile, the Bank of Canada is seen keeping interest rates on hold this year, with the next policy decision due on July 15.
Gold slipped from a two-week high as the dollar steadied after last week's declines. Spot gold TVC:GOLD and silver BIST:XAGUSD1! were down 0.8% and 0.7%, respectively.
On Friday, Canada's resource-heavy benchmark index TSX:TSX hit a two-week peak on stronger gold and copper prices, with metal miners leading broader gains.
Separately, Prime Minister Mark Carney is set to announce the preferred bidder for a contract to build 12 submarines for Canada's navy, the Globe and Mail reported.
The two contenders for the contract are German-Norwegian firm Thyssenkrupp Marine Systems XETR:TKA, and South Korean shipbuilder Hanwha Ocean KRX:042660.
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