July 17 (Reuters) - Futures linked to Canada's main

stock index declined on Wednesday, dragged down by falling crude

prices, a day after the TSX closed at a record high.

The S&P/TSX 60 futures were down 0.16% by 06:27

a.m. ET (1027 GMT). The benchmark index hit a record closing

high in the previous session after the country's annual

inflation rate cooled a tick more than expected to 2.7% in June.

Wall Street futures were also down as investors abandoned

megacap technology and semiconductor shares for small-cap

stocks.

Oil prices inched lower, a day after benchmark Brent hit a

one-month low due to weaker demand concerns from China, but a

decline in U.S. oil stockpiles kept losses in check.

Gold prices hit an all-time high, aided by soaring

expectations the U.S. Federal Reserve will cut interest rates in

September.

Copper prices slightly changed as supply concerns countered

the fragile demand from China.

With the Bank of Canada set to host its monetary policy

meeting next week, market bets for another rate cut are high,

especially after cooler-than-expected inflation data on Tuesday.

Analysts have said Canada's GDP data for April and the

unexpected rise in unemployment in June points to a weaker

economy that needs more rate cuts to prevent a recession.

Across the border, the likelihood for a September rate cut

is also strengthening, after Federal Reserve Chair Jerome Powell

acknowledged the downward trajectory of inflation in his recent

testimony to the U.S Congress.

Markets will now focus on U.S. building permits, housing

starts and industrial production dataset for June, scheduled

later in the day.

In corporate news, storage company Storagevault Canada ( SVAUF )

agreed to acquire two adjacent properties in southern

Ontario from two arm's length vendors for $71.5 million.

COMMODITIES

Gold futures: $2475.82; +0.28%

US crude: $80.76; 0.0%

Brent crude: $83.64; -0.1%

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($1 = 1.3659 Canadian dollars)