(Updates with morning prices)

By Sanchayaita Roy

May 16 (Reuters) - Canada's main stock index held steady

on Friday and was set for a sixth consecutive weekly gain, as

investors anticipate more trade agreements amid easing tariff

tension and softer U.S. inflation data.

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

was down 0.04% at 25,888.06 points.

On Friday, U.S. President Donald Trump said U.S. officials

will send letters to countries in the coming weeks, outlining

the costs associated with doing business in the United States,

though he did not provide additional details.

"In Canada,...there's an anticipation that hopefully we will

be able to renegotiate our trade agreements with them and get

back to a constructive relationship with the U.S," said Ian

Chong, Portfolio Manager at First Avenue Investment Counsel.

This week, the 90-day pause in the U.S.-China tariff

dispute, along with the recent bilateral trade agreement between

the U.S. and the UK, sparked optimism for future trade deals

with the U.S. and helped ease recession concerns.

Chong added that in just six weeks, the markets have

transitioned from extreme fear to an overbought position, and

it's remarkable how much volatility has decreased since

Liberation Day.

Meanwhile, data showed the U.S. consumer sentiment slumped

further in May, while one-year inflation expectations surged.

Markets will also focus on remarks from Federal Reserve

policymakers, with at least two officials, including Richmond

Fed President Thomas Barkin slated to speak later in the day.

On TSX, mining stocks fell 1.6% as gold prices

dropped more than 2% and were heading for their worst week in

six months, while the information and technology subindex

gained 0.5%.

In corporate news, Lithium Americas ( LAC ) fell 7.5% after

the company filed for a mixed shelf offering of about $1

billion.