July 21 (Reuters) - Futures tracking Canada's benchmark index edged higher on Monday, rebounding from the previous session's losses, as investors were optimistic about the potential for trade deals between the U.S. and its key trading partners.

Futures on the S&P/TSX index were up 0.2% at 1,629.3 points by 06:39 a.m. ET (1039 GMT).

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Canada's main stock index closed lower on Friday, dragged down by weakness in industrial stocks, as investors reacted to trade uncertainty following a report that President Donald Trump was eyeing new tariffs on European Union products.

U.S. Commerce Secretary Howard Lutnick said on Sunday he was confident that Washington could secure a trade deal with the EU, but August 1 is a hard deadline for tariffs to kick in.

However, traders awaited clarity on U.S.-EU trade talks and looked for additional trade deals ahead of Trump's August 1 tariff deadline.

Meanwhile, domestic investors will assess the Bank of Canada's Business Outlook Survey, due later in the day, for business expectations amid tariff-related uncertainty.

Among commodities, gold prices firmed and copper prices rose, while oil prices dipped slightly on Monday.

In the U.S., several industrial and tech firms are set to report their earnings this week, with Alphabet (GOOGL.O) , opens new tab and Tesla (TSLA.O) , opens new tab kicking off the results season for the "Magnificent Seven" stocks.

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https://www.reuters.com/markets/europe/tsx-futures-inch-up-trade-optimism-2025-07-21/