Aug 13 (Reuters) - Futures tracking Canada's main stock

index rose on Wednesday, extending optimism from the previous

record-breaking session, following U.S. inflation data that

supported expectations for a September rate cut.

Futures on the S&P/TSX index rose 0.16% by 05:31

a.m. ET (0931 GMT).

On Tuesday, the S&P/TSX composite index ended at a

record closing high, as a mild July CPI report from the U.S.

suggested a limited impact of tariffs on prices, reinforcing

bets for the Federal Reserve rate cut in September.

Traders have fully priced in a September rate cut and view

at least two reductions by the end of 2025, according to the CME

Group's FedWatch tool.

The increased prospects of a Fed rate cut also boosted gold

and copper prices for the day.

Oil prices, however, fell after the International Energy

Agency forecasts indicated supply may overtake demand this year.

The oil markets are also bracing for a high-stakes meeting

between U.S. President Donald Trump and Russian President

Vladimir Putin to discuss a potential end to the war in Ukraine.

Toronto's resource-heavy benchmark index is more vulnerable

to swings in commodity prices, prompting domestic investors to

stay alert to geopolitical events that affect commodities.

Wall Street futures also edged up on Wednesday following

record closing highs for the S&P 500 and the Nasdaq indexes in

the previous session.

Later in the day, the Bank of Canada will release the

Governing Council deliberations summary for the last policy

decision, when it kept rates unchanged and indicated future cuts

if the economy weakens further and inflation remains contained.

In other developments, Air Canada ( ACDVF ) on Tuesday asked

for federal government intervention in contract talks with its

flight attendants' union, after the airline declared an impasse

in the negotiations.

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($1 = 1.3757 Canadian dollars)