Sept 22 (Reuters) - Futures tied to Canada's main stock

index edged higher on Monday, after posting a seventh straight

weekly gain last week, with markets cheering the Bank of

Canada's rate cut to support the domestic economy.

Futures for the S&P/TSX index rose 0.3% to

1,767.10 points by 06:40 ET (1040 GMT), after the TSX added 1.7%

the previous week.

The commodity-heavy index, which has benefitted from the

rise in gold prices, is up 20.4% for the year, compared with the

benchmark U.S. S&P 500's 13.3% rise.

Retail sales data last Friday showed that domestic sales

fell 0.8% in July, with an advanced indicator pointing to a

rebound by 1% in August.

The country's GDP data will be in focus later this week,

with analysts expecting the Canadian economy to continue showing

signs of weakness due to trade uncertainty.

Meanwhile, Canada became one of the four major Western

nations to recognise a Palestinian state on Sunday and promote a

two-state solution, a move that prompted a furious response from

Israel.

In commodities, gold scaled a fresh record high as

markets expected further rate cuts from the U.S. Federal

Reserve, while silver surpassed a 14-year high tracking

gold's moves. Oil prices were little changed.

In company news, Canadian pension fund La Caisse will buy

Australian renewables developer Edify Energy for A$1.1 billion

($724.57 million).

($1 = 1.3799 Canadian dollars)

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