Oct 21 (Reuters) - Futures linked to Canada's

resource-heavy main stock index fell on Tuesday as commodity

prices weakened, while investors awaited domestic inflation data

that could solidify the Bank of Canada's path toward interest

rate cuts.

December futures on the S&P/TSX index were down

0.5% at 05:30 a.m. ET (0930 GMT).

Market participants are closely watching Canada's consumer

price index (CPI) data, due at 8:30 a.m. ET, which economists

expect will show a 2.3% year-over-year increase in September.

The inflation reading could prove decisive for the BoC's

upcoming monetary policy decision, with traders currently

pricing in about 90% chance of a 25-basis-point cut.

Among commodities, gold prices slipped as the U.S.

dollar strengthened and investors locked in profits after

bullion reached a fresh high in the previous session.

Shanghai copper pared early gains, with traders cautiously

monitoring the upcoming U.S.-China trade talks, while China's

slowing economy added another layer of uncertainty to the

market.

Oil prices, held relatively steady as

concerns about oversupply and demand risks persisted.

The Toronto Stock Exchange's composite index

rebounded on Monday, with metal mining shares leading

broad-based gains, as concerns about an escalating global trade

war temporarily subsided.

Despite recent market volatility, the Canadian benchmark

remains near all-time highs, supported by rising gold prices and

optimism about artificial intelligence from Wall Street.

On the trade front, The Globe and Mail reported on Tuesday

that a U.S.-Canada trade deal covering steel, aluminum and

energy could be ready for Prime Minister Mark Carney and U.S.

President Donald Trump to sign at the Asia-Pacific Economic

Cooperation summit later this month.

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