CANADA STOCKS-TSX futures inch up on Fed rate cut hopes despite US government shutdown

Oct 3 (Reuters) - Futures tied to Canada's main stock index edged higher on Friday, as growing hopes of a near-term Federal Reserve rate cut overshadowed concerns over a U.S. government shutdown.

The S&P/TSX index futures contracts were up 0.42% at 1,784.60 points as of 06:07 a.m. ET (1007 GMT). The benchmark index rose for the fifth straight session on Thursday to hit another record high.

The prolonged U.S. government shutdown enters its third day on Friday, delaying key economic data such as the non-farm payrolls report that was scheduled for release on Friday.

However, investors have mostly shrugged off the shutdown, the 15th since 1981, partly because shutdowns have historically had a limited impact on economic growth and market performance.

Meanwhile, traders have kept bets for a Fed rate cut alive as alternative data from public and private sources have so far point to a sluggish U.S. labor market.

In commodities, gold held steady and was poised for a seventh consecutive weekly rise. Oil and copper prices also rose on Friday.

On Thursday, Bank of Canada Deputy Governor Rhys Mendes said inflation is becoming more volatile due to shifts in U.S. trade policy, structural changes, and rising geopolitical tensions.

The central bank is reviewing how it measures its preferred inflation indicators to better assess the impact of external shocks on the economy.

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Canadian markets directory (Reporting by Sanchayaita Roy in Bengaluru; Editing by Leroy Leo)