CANADA STOCKS-TSX futures gain as copper surges on China's potential output cut

March 15 (Reuters) - Futures for Canada's main stock index rose on Friday as copper prices surged on a potential output cut by China, while investors awaited domestic housing starts data to gauge the strength of the Canadian economy.

March futures on the S&P/TSX index were up 0.3% at 6:45 a.m. ET (10:45 GMT) after the benchmark S&P/TSX index retreated from a two-year high in the previous session as traders revised their rate-cut bets.

The focus of the day will be the materials sector that houses precious and base metals miners, as Shanghai copper prices hit a record high while prices in London touched an 11-month peak, buoyed by a potential output cut in top producer China.

Gold managed to eke out gains but was set for its first weekly drop in four weeks after surprisingly hot U.S. inflation readings prompted traders to re-think imminent Fed rate cuts.

Energy shares may see a decline with Brent futures falling 0.7% to $84.85 a barrel after crossing $85 a barrel for the first time since November on Thursday.

Investors will also keep an eye on the housing data, due at 8:15 a.m. ET, which is expected to show that the seasonally adjusted annualized rate of housing starts rose to 230,000 units in February, according to a Reuters poll of economists, from 223,600 units a month ago.

In the U.S., futures moved slightly higher as investors braced for a Fed meeting next week that could provide clues on the timing of the central bank's interest rate cuts.

In domestic company news, TC Energy agreed to sell its Prince Rupert natural gas pipeline project to two partners in Ksi Lisims LNG, a proposed Canadian export terminal, the North American pipeline operator said on Thursday.

COMMODITIES AT 6:45 a.m. ET

Gold futures: $2,174.3; +0.3%

US crude: $80.69; -0.7%

Brent crude: $84.85; -0.7%

($1= C$1.3535) (Reporting by Shubham Batra in Bengaluru; Editing by Vijay Kishore)