July 21 (Reuters) - Futures tracking Canada's benchmark

index edged higher on Monday, rebounding from the previous

session's losses, as investors were optimistic about the

potential for trade deals between the U.S. and its key trading

partners.

Futures on the S&P/TSX index were up 0.2% at

1,629.3 points by 06:39 a.m. ET (1039 GMT).

Canada's main stock index closed lower on Friday, dragged

down by weakness in industrial stocks, as investors reacted to

trade uncertainty following a report that President Donald Trump

was eyeing new tariffs on European Union products.

U.S. Commerce Secretary Howard Lutnick said on Sunday he was

confident that Washington could secure a trade deal with the EU,

but August 1 is a hard deadline for tariffs to kick in.

However, traders awaited clarity on U.S.-EU trade talks and

looked for additional trade deals ahead of Trump's August 1

tariff deadline.

Meanwhile, domestic investors will assess the Bank of

Canada's Business Outlook Survey, due later in the day, for

business expectations amid tariff-related uncertainty.

Among commodities, gold prices firmed and copper prices

rose, while oil prices dipped slightly on Monday.

In the U.S., several industrial and tech firms are set to

report their earnings this week, with Alphabet and

Tesla kicking off the results season for the

"Magnificent Seven" stocks.

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