* TSX futures up 0.61%

* Oil and gold prices fall

* Bank of Nova Scotia ( BNS ), BMO post higher profits

May 27 (Reuters) - Futures for Canada's main stock index

edged higher on Wednesday, supported by expectations of strong

bank earnings, while investors kept a close eye on developments

in the Middle East.

June futures on the S&P/TSX index were up 0.61% at

6:10 a.m. ET (10:10 a.m. GMT).

* Canada's largest banks have begun reporting quarterly

results, with profits expected to have risen despite trade

tensions, the Middle East conflict and broader economic

uncertainty. However, they now they face tougher challenges as

consumers struggle to repay debts and a subdued housing market

weighs on their core domestic business.

* Bank of Nova Scotia ( BNS ) reported a rise in

second-quarter profit, helped by strong revenue from its trading

desks as markets remained volatile.

* BMO Financial also reported a jump in

second-quarter profit, lifted by robust performance in its

capital markets business.

* National Bank of Canada ( NTIOF ) is set to release

its quarterly results later in the day.

* On the geopolitical front, Iran's foreign ministry said

U.S. strikes in its southern Hormozgan province on Tuesday was a

"gross violation" of the tenuous ceasefire, in place for nearly

seven weeks.

* Oil prices slipped around 3% as traders sought clarity on

negotiations in the Middle East after renewed hostilities set

back efforts to reopen the Strait of Hormuz.

* Spot gold and silver fell 0.44% and 1.91%,

respectively, as investors awaited comments from Federal Reserve

officials for clues on monetary policy.

* Investors and businesses will also keep an eye on the

first round of formal negotiations of the U.S.-Mexico-Canada

free trade deal that is expected to kick off in Mexico next

week.

* Meanwhile, mining firm Silvercorp posted a jump

in fourth-quarter revenue on higher silver prices.

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