CANADA STOCKS-TSX retreats from record peak as investors look for progress in trade negotiations

By Sanchayaita Roy

June 3 (Reuters) - Canada's main stock index slipped on Tuesday, led by losses in metal miners' shares, as investors awaited clarity on U.S. tariff negotiations amid ongoing economic uncertainty.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 0.2% at 26,338.04 points. The index notched a record high in the previous session.

On Monday, the White House said that U.S. President Donald Trump and Chinese leader Xi Jinping will probably speak this week to iron out trade issues.

Investors will closely monitor the call between the two leaders, as ongoing tariff-induced trade tensions between the world's two largest economies have caused significant volatility in global equities and businesses.

"The temporary easing of tariffs between the U.S. and China has offered some relief, but Canadian investors remain cautious...watching for signs of meaningful progress before repositioning portfolios", said Shiraz Ahmed, senior portfolio manager and founder of Sartorial Wealth, Raymond James.

Additionally, the Trump administration wants countries to provide their best offer on trade negotiations by Wednesday.

However, concerns prevailed over the implementation of Trump's tariffs after they ran into legal hurdles last week, with the administration asking an appeals court to pause a second court ruling.

The Paris-based Organisation for Economic Cooperation and Development (OECD) trimmed its global growth outlook and said the trade war was taking a bigger toll on the U.S. economy than before.

"Slower U.S. growth poses spillover risks for Canada, making it even more important for investors here to stay globally diversified", Shiraz added.

Focus will be on the Bank of Canada's interest rate due on Wednesday.

On TSX, the materials group .GSPTTMT fell 1.2%, as gold pulled back after nearing a four-week high earlier in the session, while the healthcare sector .GSPTTHC fell 0.9%.

Conversely, energy subindex .SPTTEN rose 0.5% as oil prices edged up.