(Updates with morning prices, adds analyst quotes)

By Sanchayaita Roy

July 22 (Reuters) - Canada's main stock index was

subdued on Tuesday, pressured by technology stocks, as investors

awaited potential trade deals between the U.S. and its partners.

The Toronto Stock Exchange's S&P/TSX composite index

was down 0.03% at 27,307.73 points.

Trade negotiations appeared shaky after EU diplomats said

the 27-nation bloc was considering broader counter-measures

against Washington.

Prospects for an interim trade deal between India and the

U.S. have also dimmed, according to Indian government sources.

Meanwhile, U.S. Treasury Secretary Scott Bessent announced

plans to meet his Chinese counterpart next week, potentially

discussing an extension to the August 12 deadline set for

tariffs on China.

The Bank of Canada said in a survey Canadian businesses see

less chance of a worst-case tariff scenario but remain cautious,

while keeping hiring and investment in check.

"The TSX should do relatively well throughout this earnings

period," said Ian Chong, portfolio manager at First Avenue

Investment Counsel.

He added that while there will be a tariff impact, it

will be "relatively muted" since the full-blown 35% tariff on

Canada has not been set yet.

On the TSX, materials stocks gained 1.1% after

gold prices retreated from a five-week high.

Conversely, the information and technology subindex

slipped 1.8%, tracking declines in its Wall Street

peers.

In the U.S., Alphabet and Tesla will kick

off the results season for the "Magnificent Seven" stocks on

Wednesday.