Futures on the S&P/TSX index were up 0.4% at 7:22 a.m. ET, tracking U.S. and European peers. [.N] [.EU]
Crude oil prices jumped 3% after top importer China eased some of the country's stringent COVID curbs. Prices of precious metals also climbed with gold gaining 0.1% against a softer dollar. [O/R] [GOL/] [FRX/]
The dollar was headed for its biggest two-day drop in almost 14 years, after a smaller-than-expected rise in U.S. inflation raised hopes the Federal Reserve might soften its aggressive monetary policy. A weaker dollar makes commodities priced in the greenback cheaper for overseas buyers.
Materials and energy stocks account for nearly 30% of the TSX.
Toronto stocks surged in the previous session, posting their biggest advance in two and a half years after technology and resource shares jumped on U.S. inflation data.
Bank of Canada (BoC) Governor Tiff Macklem said on Thursday that the country's red-hot labor market can weather an economic slump without seeing a major surge in unemployment.
Traders are pricing a 73.6% chance of a smaller 25 basis points rate hike by the BoC at its December meeting.
Some Canadian employers say they plan to hold onto their workers even if the economy slips into a recession rather than risk not be able to rehire later, which should put a lid on job losses and soften the economic blow from a slump.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Vinay Dwivedi)
