TSX futures recover after two-day fall as oil rises

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Dec 10 (Reuters) - Futures for Canada's main stock index rose on Friday as oil prices recovered, but sentiment remained fragile on worries over the COVID-19 pandemic and ahead of U.S. inflation data which could set the course for the Federal Reserve's interest rate hikes.

December futures on the S&P/TSX index were up 0.2% at 7:02 a.m. ET after falling for two straight days.

The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) ended 0.7% lower at 20,925.49 on Thursday.

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Oil prices rose, with Brent crude futures up 66 cents, or 0.9%, at $75.08 a barrel by 1141 GMT after falling 1.9% on Thursday, while U.S. West Texas Intermediate (WTI) crude futures rose 1% to $71.68.

November U.S. inflation data, due at 08:30 a.m. ET, is seen rising to 6.8% year-on-year, overtaking October's 6.2% increase, with investors worried any upside surprise could raise bets for faster tapering by the Federal Reserve and bring forward expectations for interest rate rises. read more

Dow e-minis were up 114 points, or 0.32% at 7:02 a.m. ET, while S&P 500 e-minis were up 20 points, or 0.43% and Nasdaq 100 e-minis were up 68 points, or 0.42%.

TOP STORIES

The Bank of Canada will leave its inflation target at 2% in a framework renewal, shunning a major shift in monetary policy strategy similar to the one adopted by the U.S. Federal Reserve last year, a source familiar with the process said on Thursday. read more

Oil output in Canada, the world's fourth-largest producer, will climb over the next decade and peak at 5.8 million barrels per day (bpd) in 2032, seven years sooner than previously forecast, the Canada Energy Regulator (CER) said on Thursday. read more

ANALYST RESEARCH HIGHLIGHTS

Altus Group Ltd (AIF.TO): CIBC raises target price to C$73 from C$63

B2Gold Corp (BTO.TO): JP Morgan cuts to underweight from neutral

Stelco Holdings Inc (STLC.TO): JP Morgan cuts to neutral from overweight

COMMODITIES AT 7:00 a.m. ET

Gold futures : $1,771.3; -0.25%

US crude : $71.66; +1%

Brent crude : $75.07; +0.9%

U.S. ECONOMIC DATA DUE ON FRIDAY

0830 November Consumer Price Index: Expected to rise to 6.8% year-on-year, overtaking October's 6.2%

FOR CANADIAN MARKETS NEWS, CLICK ON CODES:

TSX market report

Canadian dollar and bonds report CA/

Reuters global stocks poll for Canada ,

Canadian markets directory

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Reporting by Susan Mathew in Bengaluru; Editing by Krishna Chandra Eluri

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