CANADA STOCKS-TSX futures rise on Fed rate cut optimism, surging metal prices

Oct 15 (Reuters) - Futures tied to Canada's main stock index advanced on Wednesday, as dovish-leaning comments from U.S. Federal Reserve Chair Jerome Powell put the spotlight back on rate cut expectations while rising precious metal prices supported the gains.

December futures on the S&P/TSX index were up 0.7% at 05:52 (0952 GMT).

Powell's Tuesday comments, which left the door open to further rate cuts, along with solid earnings results from U.S. banking giants, underpinned the market.

Upbeat third-quarter results from the world's biggest supplier of computer chip-making equipment, ASML, provided an additional boost.

Rising metal prices offered further support, with gold crossing the $4,200-per-ounce threshold for the first time on Wednesday.

Silver rose 3%, building on Tuesday's record high of $53.60 as it tracked gold's rally.

Yet sentiment remained fragile, rocked by the escalation in the U.S.-China trade war after U.S. President Donald Trump announced additional 100% duties on Chinese goods in retaliation for Beijing's expanded export controls on rare earths.

Meanwhile, oil prices declined as investors weighed the International Energy Agency's warning of a supply surplus in 2026 and the U.S.-China trade tensions that could dampen demand.

The Toronto Stock Exchange's S&P/TSX composite index closed higher on Tuesday as the materials sector benefited from recent metal price increases and investors cheered U.S. bank earnings results, which also provided positive signals for Canadian banks.

In corporate news, Canadian building materials firm Goodfellow (GFELF) reported third-quarter net earnings of C$3.7 million ($2.63 million), down from C$5.8 million a year earlier.

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($1 = 1.40 Canadian dollars) (Reporting by Ragini Mathur in Bengaluru; Editing by Sahal Muhammed)