Aug 12 (Reuters) - Futures tracking Canada's main stock index climbed on Tuesday as commodity prices firmed following the U.S.–China trade truce, while attention turned to the much-awaited U.S. inflation data for insight into the Federal Reserve's rate-cut trajectory.
Futures on the S&P/TSX index .SXFcv1 rose 0.24% by 05:34 a.m. ET (0934 GMT). The move follows modest gains on Toronto Stock Exchange's S&P/TSX composite index .GSPTSE in the previous session. .TO
U.S. President Donald Trump extended a tariff truce with China to November 10, averting triple-digit duties on Chinese goods and allowing U.S. retailers to stock up for the critical year-end holiday season at lower tariff rates.
Oil prices nudged up as the latest deadline extension eased demand concerns in the world's two largest oil consumers. O/R
Energy and mining stocks comprise a significant portion of the Canadian benchmark index, and rising demand along with easing tariff fears benefits domestic markets.
Deadline extension also pushed up copper prices in Shanghai and London, while gold prices rose ahead of U.S. consumer price inflation data. MET/L GOL/
U.S. inflation data, due at 8:30 a.m. ET, could allow investors to gauge the impact of tariffs on price pressures and recalibrate bets on Fed rate cuts for the rest of the year. Economists polled by Reuters expect an uptick in annual inflation.
According to the CME Group's FedWatch tool, odds of a September rate cut stand at 84.5%.
In other news, China announced a preliminary anti-dumping duty on Canadian canola imports, a fresh escalation in a year-long trade dispute that began with Ottawa's imposition of tariffs on Chinese electric vehicle imports last August.
Apparel manufacturer Gildan Activewear GIL.TO is nearing a $5 billion deal to acquire Hanesbrands HBI.N, including debt, the Financial Times reported.
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($1 = 1.3788 Canadian dollars)
(Reporting by Nikhil Sharma; Editing by Vijay Kishore)
((Nikhil.Sharma@thomsonreuters.com;))