December futures on the S&P/TSX index were down 0.3% at 7:00 a.m. ET (1200 GMT), while U.S. markets were largely muted. [.N]

U.S. Personal Consumption Expenditures (PCE) report, which is considered the Federal Reserve's preferred inflation gauge, is due later in the week.

A set of domestic economic data is also on investors' radar that would include the third-quarter gross domestic product (GDP) report and November employment numbers.

Kicking off big-bank earnings, Bank of Nova Scotia reported a drop in fourth-quarter profit as a murky economic climate prompted the lender to set aside bigger funds for potential loan defaults.

On the commodities front, oil prices rose on expectations that the OPEC+ producer group may deepen and extend output cuts.

Prices of most base metals were largely stable, while gold prices steaded near their six-month highs.

The Toronto Stock Exchange's S&P/TSX composite index ended at a near two-week low in the previous session, with energy stocks leading declines.

Despite recent weakness, the benchmark index eyes sharp monthly gains as hopes grow that global interest rates have peaked.

Oil and gas pipeline company TC Energy said it expects adjusted core earnings for 2024 to be 5% to 7% higher than in 2023.

Piper Sandler downgraded e-commerce firm Shopify to "underweight" from "neutral".

Miner First Quantum Minerals said in a statement that it hopes to avoid arbitration with Panama's government over a major copper mine.

COMMODITIES AT 7:00 a.m. ET

Gold futures: $2,015.9; +0.2% [GOL/]

US crude: $75.62; +1.0% [O/R]

Brent crude: $80.78; +1.0% [O/R]

($1= C$1.3584)

(Reporting by Shashwat Chauhan in Bengaluru; Editing by Shweta Agarwal)