March futures on the S&P/TSX index were up 0.4% at 7:13 a.m. ET (1213 GMT), while their U.S. counterparts also edged higher. [.N]

The focus would be on Canada's consumer prices data, due at 8:30 a.m. ET, which is expected to show headline inflation at 2.9% year-on-year in November against last month's reading of 3.1%.

The Bank of Canada could start cutting interest rates next year as long as core inflation comes down as predicted, BNN Television cited Governor Tiff Macklem as saying in an interview that aired on Monday.

San Francisco Fed President Mary Daly said cuts to the U.S. central bank's benchmark rate are likely to be appropriate in 2024, the Wall Street Journal reported.

The Bank of Japan, on the other hand, maintained ultra-loose policy settings in a widely expected move.

The Toronto Stock Exchange's S&P/TSX composite index ended higher in the previous session, lifted by energy stocks.

Crude oil prices were largely steady, while prices of most base metals advanced and gold prices were muted. [MET/L] [GOL/] [O/R]

Meanwhile, some Canadian oil and gas producers said they will not rush to accelerate emission cuts until they see if unpopular Prime Minister Justin Trudeau survives long enough to implement his proposed oil and gas emissions cap.

Among individual stocks, refiner Imperial Oil forecast 2024 upstream production higher than its 2023 outlook.

Brokerage CIBC downgraded automotive supplier Magna International to "neutral" from "outperformer", while it upgraded Boyd Group Services to "outperformer" from "neutral".


Gold futures: $2,031; flat [GOL/]

US crude: $72.4; -0.1% [O/R]

Brent crude: $77.84; -0.1% [O/R]

($1= C$1.3383)

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