CANADA STOCKS-TSX steady, poised for sixth weekly gain amid trade optimism

By Sanchayaita Roy

May 16 (Reuters) - Canada's main stock index held steady on Friday and was set for a sixth consecutive weekly gain, as investors anticipate more trade agreements amid easing tariff tension and softer U.S. inflation data.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 0.04% at 25,888.06 points.

On Friday, U.S. President Donald Trump said U.S. officials will send letters to countries in the coming weeks, outlining the costs associated with doing business in the United States, though he did not provide additional details.

"In Canada,...there's an anticipation that hopefully we will be able to renegotiate our trade agreements with them and get back to a constructive relationship with the U.S," said Ian Chong, Portfolio Manager at First Avenue Investment Counsel.

This week, the 90-day pause in the U.S.-China tariff dispute, along with the recent bilateral trade agreement between the U.S. and the UK, sparked optimism for future trade deals with the U.S. and helped ease recession concerns.

Chong added that in just six weeks, the markets have transitioned from extreme fear to an overbought position, and it's remarkable how much volatility has decreased since Liberation Day.

Meanwhile, data showed the U.S. consumer sentiment slumped further in May, while one-year inflation expectations surged.

Markets will also focus on remarks from Federal Reserve policymakers, with at least two officials, including Richmond Fed President Thomas Barkin slated to speak later in the day.

On TSX, mining stocks .GSPTTMT fell 1.6% as gold prices dropped more than 2% and were heading for their worst week in six months, while the information and technology subindex .SPTTTK gained 0.5%.

In corporate news, Lithium Americas LAC.TO fell 7.5% after the company filed for a mixed shelf offering of about $1 billion.