CANADA STOCKS-TSX muted as focus shifts from Carney's victory back to trade war

By Sanchayaita Roy and Sukriti Gupta

April 29 (Reuters) - Canada's main stock index was subdued in choppy trading on Tuesday, as cautious investors moved on from the country's elections to focus on the potential economic impact of a global trade war triggered by U.S. President Donald Trump's tariffs.

Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 0.02% at 24,796.55 points.

The market reaction was muted to Prime Minister Mark Carney-led Liberals securing a victory without an outright majority in Canada's parliamentary elections, which had centered on Trump's tariffs on its northern neighbor.

"The elections aren't having much of an effect on stock markets", said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.

The election was closely watched for how it could shape Canada's policy in the trade war with U.S., but now focus has moved back to Trump's policies.

"Investors welcome clarity yet fear Trump's trade war impacting Canada's economy," said Graham Priest, investment advisor at BlueShore Financial.

On Tuesday, U.S. Treasury Secretary Scott Bessent predicted that China could lose 10 million jobs quickly due to tariffs, and added that the "onus" would be on Beijing, hitting hopes that the world's two largest economies could make progress on easing their escalating trade war.

Canada's auto parts suppliers may get a boost from U.S. official's comments that Trump will sign an executive order on Tuesday to soften the impact of his automotive tariffs.

On TSX, capped communication .GSPTTTS stocks led the gains, up 1%, with BCE Inc BCE.TO topping the index, with a 1.5% rise.

On the flip side, heavyweight energy .SPTTEN shares fell 0.8%, as oil prices fell to near a two-week low.

Metal mining .GSPTTMT shares fell 0.3%, as gold prices slipped on signs of easing tensions in the U.S.-China trade dispute.

More economic data are on the radar this week, with investors' focus on corporate earnings from many of the magnificent seven companies of the world.