CANADA STOCKS-TSX flat as investors assess domestic trade updates

By Twesha Dikshit

July 18 (Reuters) - Canada's main stock index was subdued on Friday, with gains in utilities offsetting declines in industrials, as investors assessed domestic trade updates and data showing economic resilience.

Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was flat at 27,395.08 points, a day after hitting record highs, but was set to log weekly gains.

Data from last Friday showed Canada's economy added many more jobs than expected in June, and the unemployment rate surprisingly dipped to 6.9%. Thursday's U.S. retail data showed sales rebounded more than expected in June.

Canada and New Zealand reached a "mutually satisfactory" resolution to a long-term dispute over dairy product access, Ottawa said on Thursday.

Declines on the day were led by industrial shares .GSPTTIN falling 0.7%, with Air Canada AC.TO dropping 3.7%, the most on the index.

Canadian Pacific Kansas City CP.TO and Canadian National Railway CNR.TO dropped over 2% each.

On the flip side, utility stocks .GSPTTUT rose, boosted by Capital Power CPX.TO and Transalta Corp TA.TO shares adding 2% and 3.6%, respectively.

Energy stocks .SPTTEN climbed 1%, with Headwater Exploration HWX.TO and Baytex Energy BTE.TO rising over 3.5% each.

Among individual stocks, Transalta Corp TA.TO rose 3.6% after brokerage Scotiabank upgraded its rating.

Looking ahead, investors will assess Bank of Canada's Business Outlook Survey, set for release on Monday, for business expectations amid tariff-related uncertainty.

RBC analysts expect early stabilization, with Canada's duty-free exemption for trade compliant under the USMCA treaty.

"Better than feared growth and higher than wanted inflation topped with the prospect of significant fiscal stimulus spending in the year ahead — leaves a high bar for the BoC to make additional interest rate cuts this year," RBC analysts said in a note.