(Updates with morning prices)

By Twesha Dikshit and Sukriti Gupta

July 2 (Reuters) - Canada's main stock index was flat in

choppy trading on Wednesday as investors assessed weak domestic

and U.S. economic data, while tracking signs of any progress on

trade talks ahead of President Donald Trump's July 9 tariff

deadline.

The S&P/TSX composite index was flat at 26877.26

points, after markets resumed trading following the Canada Day

holiday.

Data showed Canada's manufacturing sector fell sharply in

June, with U.S. tariffs affecting demand and leading to the

biggest output cut in five years.

Trump said on Tuesday he was not considering extending the

deadline for countries to negotiate trade deals with the U.S.

Canada aims to lift all tariffs as part of a deal with the

U.S., Ottawa's Washington Ambassador told The Globe and Mail.

"There are concerns as we are still in negotiations and Mr.

Trump is still in a fairly bellicose mood via his friends and

trading partners...but we have climbed that wall of anxiety or

stress with our resources and our financial institutions,"

Caldwell Securities Chairman Thomas Caldwell said.

On the TSX, healthcare stocks rose 1.6%, while

mining shares advanced 1.2%, tracking a rise in

copper prices.

Hudbay Minerals ( HBM ) and Capstone Copper ( CSCCF ) gained

3.2% and 5.7%, respectively.

Communication stocks rose 1.5%, with Rogers

Communications ( RCIAF ) adding 3.6% after BMO raised its price

target.

Conversely, technology stocks were the biggest

laggards, falling 1.1%. BlackBerry shares fell 6.9% to

the bottom of the index.

Among individual stocks, Bombardier rose 14.6% to

the top of the index after the company said on Monday it had

secured an order for 50 Challenger and Global aircraft in a $1.7

billion deal including a service agreement.

MDA Space ( MDALF ) was up 4.2% after it completed the

acquisition of SatixFy Communications.

First Quantum rose 5.8% after Barclays raised its

price target.

Meanwhile, U.S. data showed private payrolls unexpectedly

fell in June, with job gains being smaller than estimated during

the month.