June 26 (Reuters) - Futures linked to Canadian stocks

edged higher on Wednesday, supported by higher crude prices, and

were set to regain previous session's lost ground after an

unexpected rise in domestic inflation diminished hopes of a July

rate cut by the Bank of Canada (BoC).

September futures on the S&P/TSX index were up

0.08% at 06:31 a.m. ET (1031 GMT).

Wall Street futures were also up on Wednesday, as Nasdaq

extended its rally from the previous session on the back of

robust gains in chipmaker Nvidia and other tech megacaps.

The energy sector was set for a positive start as

oil futures, rose, hovering around a two-month

high, due to forecasts of an eventual inventory drawdown during

the third quarter and risks related to the Middle East conflict.

Copper prices rose on firm dollar but weak demand in China

restricted gains. On the other hand, gold prices fell

ahead of the key U.S. inflation data due later this week.

A hotter-than-expected annual Canadian inflation data on

Tuesday dwindled hopes of a second interest rate cut by the BoC

at its next policy meeting on July 24.

Markets now see the Canadian central bank keeping rates

steady in July, while anticipating roughly two 25-basis-point

rate cuts later this year.

However, there will be another set of inflation readings,

coupled with GDP figures for May and the jobs report for June,

before the BoC can make a decision.

In corporate news, Onex Corp ( ONEXF )- backed WestJet

Airlines said a union representing its maintenance engineers

rejected its new offer and served a second strike notice, just

days after the union called off a strike by agreeing to return

to the bargaining table.

COMMODITIES

Gold: $2309.33; -0.42%

US crude: $81.57; +0.92%

Brent crude: $85.69; +0.80%

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($1 = 1.3670 Canadian dollars)