Sept 3 (Reuters) - Futures tied to Canada's main stock

index fell on Tuesday as oil prices dropped, while investors

focused on the Bank of Canada's monetary policy decision due

later this week.

The S&P/TSX futures were down 0.7% at 6:11 a.m. ET (10:11

GMT).

The energy sector came under pressure as oil prices declined

on sluggish economic growth in China.

The materials sector remained in focus as gold prices eased

on rate-cut optimism in the United States, while copper prices

tumbled to a two-week low.

The S&P/TSX composite index ended higher on

Friday, posting an overall 1% monthly gain for August.

The Bank of Canada is set to hold its policy meeting on

Wednesday, where money markets expect a third consecutive rate

cut that will bring the interest rate down to 4.25%.

While the Canadian economy has exhibited a strong footing in

the second quarter amid a slump in inflation, investor hopes for

a rate cut remained consistent.

At 9:30 a.m. ET, investors will gauge the S&P Global Canada

Manufacturing Purchasing Managers' Index (PMI) numbers, the last

major dataset before the BoC's rate decision.

Across the border, investors look forward to the U.S. ISM

manufacturing activity survey due later in the day.

The U.S. August jobs data is also expected later this week,

which will be essential to infer the extent of the imminent rate

cuts in the United States starting later this month.

Markets are betting on a 25-basis points cut by the Federal

Reserve in its next policy meeting on Sept. 18.

In corporate news, industrial valves manufacturer Velan ( VLNSF )

signed a service agreement with GEH SMR Technologies

Canada to supply products and services for a small modular

reactor project with Ontario Power Generation.

COMMODITIES

Gold: $2,499.05; -0.01%

US crude: $72.48; -1.4%

Brent crude: $75.89; -2.1%

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($1 = 1.3537 Canadian dollars)