CANADA STOCKS-TSX futures rise as oil steadies, Canada PM announces China trade deal

Jan 16 (Reuters) - Futures tracking Canada's main stock index edged higher on Friday, as oil prices regained some lost ground and Prime Minister Mark Carney secured an initial trade deal with China.

March futures on Toronto's S&P/TSX Composite Index SXFcv1 were up 0.24% as of 5:42 a.m. ET.

Canada and China have agreed to cut tariffs on electric vehicles and canola, Carney said on Friday, with both nations promising to tear down trade barriers while forging new strategic ties.

China is the world's largest canola seed buyer and halted imports from Canada last year amid a diplomatic dispute, tightening supplies and bringing its canola crushing industry to a standstill. China was a $4 billion canola seed market for Canada, according to Carney.

The benchmark index .GSPTSE closed at a record high on Thursday, as rising financial and industrial shares outweighed losses in commodity-linked stocks, which were dragged down by falling crude oil and precious metal prices.

But oil firmed on Friday, with traders assessing supply concerns, even as chances of a U.S. strike on Iran receded. Brent crude futures LCOc1 and U.S. West Texas Intermediate crude CLc1 rose more than 1%, after a 4% drop on Thursday. O/R

Spot gold XAU= and silver XAG= both extended the previous session's losses as stronger-than-expected economic data from the U.S. tempered expectations for near-term Federal Reserve rate cuts. GOL/

On the macro front, investors await December inflation data for Canada due on January 19.

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