CANADA STOCKS-TSX slips amid trade uncertainty, debate over Trump's tax bill

May 21 (Reuters) - Futures for Canada's main stock index dipped on Wednesday, retreating from a record peak in the previous session, as investors kept a cautious eye on trade developments and a debate over a sweeping U.S. tax bill.

June futures on the S&P/TSX index .SXFcv1 were down 0.6% at 6:04 a.m. ET (1004 GMT).

Canada's main stock index rose to a record high on Tuesday, led by gains for metal mining shares, as investors shrugged off hotter-than-expected domestic inflation data and looked for further progress in the easing of global trade tensions.

However, market sentiment remains fragile due to a lack of progress in U.S. trade talks, as President Donald Trump's 90-day tariff respite nears its end and a U.S. tax bill faces a hearing in the U.S. House of Representatives.

The bill, which Trump has called "big, beautiful", faces a critical stress test on the day, as Republicans navigate internal divisions over Medicaid cuts and tax breaks in high-cost coastal states.

Meanwhile, Canada's big banks are bracing for trade uncertainty and are expected to have shored up loan loss reserves in the second quarter, with four of the big six banks putting aside over C$1 billion.

Markets are also monitoring the Group of Seven finance ministers' meetings currently underway in Canada for any hints that a weaker dollar could help advance trade negotiations.

In commodities, gold prices rose nearly 1%, hitting their highest levels in more than a week.

Oil prices gained more than 1% and copper prices in London also rose.

In corporate news, Canadian fund Brookfield BAM.TO has received a binding bid for its student accommodation platform Livensa from Spain's Bankinter BKT.MC, for what would be one of the largest deals in the sector in recent years.

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