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 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 has

received a binding bid for its student accommodation platform

Livensa from Spain's Bankinter, for what would be one

of the largest deals in the sector in recent years.

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