Oct 15 (Reuters) - Futures tied to Canada's main stock

index fell on Tuesday due to lower crude prices, with investors

returning from a long weekend and adopting a cautious tone ahead

of key domestic inflation data.

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

0.3% at 6:01 a.m. ET (10:01 GMT).

All eyes were on Canada's consumer price index data (CPI),

due at 08:30 a.m. ET, which could give investors signals about

the magnitude of the central bank's interest rate cut at its

policy meeting on October 23.

The data is expected to show that the annual inflation rate

cooled to 1.8% in September, below the Bank of Canada's target

of 2%, which it had managed to maintain in August.

Traders currently see a 47.2% chance for a hefty 50-basis

point cut, while bets for a quarter-point reduction stand at

52.8%.

The top bank has already cut rates three times this year,

and at its September policy meeting, it stressed the need to

prevent inflation from falling too much due to weak economic

growth.

Canada's energy sector could take a hit as oil prices

dropped over 4% due to a weaker demand outlook and after reports

said Israel is not willing to strike Iranian oil targets.

The materials sector could take its cues from gold prices

that steadied and copper prices that fell to a three-week low.

The composite index hit a record high on Friday in

a broad-based rally as investors cheered U.S. bank earnings and

the move to lower borrowing costs globally.

In corporate news, brokerage CIBC downgraded Canadian

technology firm VerticalScope Holdings ( VFORF ) to neutral from

outperformer.

COMMODITIES

Gold: $2,654.2; +0.1%

US crude: $70.19; -4.9%

Brent crude: $73.73; -4.8%

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($1 = 1.3808 Canadian dollars)