March futures on the S&P/TSX index were up 0.2% at 6:55 a.m. ET (11:55 GMT), in line with their Wall Street counterparts.

The December consumer price index (CPI) report is due at 8:30 a.m. ET (1330 GMT) and will test investor expectations that the Fed could lower borrowing costs in March. Some policymakers in recent days have pushed back against early rate cuts.

Energy shares, which have lagged other sectors this week, were in focus as oil prices rose on concerns of the conflict in the Middle East escalating. [O/R]

Prices of gold and base metals also advanced on a softer dollar. [MET/L] [GOL/]

The Toronto Stock Exchange's S&P/TSX composite index is hovering just below a 20-month high hit earlier this week, with strength in the technology sector aiding gains.

Investors are also awaiting results from major U.S. banks that will kick off the fourth-quarter earnings season on Friday.

In company news, Thomson Reuters, the parent company of the Reuters news agency said on Thursday it has offered to buy Swedish e-invoicing and tax solutions company Pagero for 6.4 billion crowns (about $627 million), topping an earlier offer from U.S. tax technology firm Vertex.

The Panama unit of Canadian miner First Quantum Minerals said on Wednesday that it will present the first phase of its mine preservation plan to government officials on Jan 16, according to a statement.

Canadian fashion company Aritzia reported its third-quarter results on Wednesday after the bell, beating analysts' expectations.

COMMODITIES AT 6:55 a.m. ET

Gold futures: $2,038.4; +0.5% [GOL/]

US crude: $72.74; +1.9% [O/R]

Brent crude: $78.21; +1.8% [O/R]

(Reporting by Amruta Khandekar and Purvi Agarwal in Bengaluru; Editing by Tasim Zahid)