May 21 (Reuters) - Canada's main stock index slipped on Wednesday, pulling back from the previous session's record high, as investors awaited the outcome of a crucial debate on a sweeping U.S. tax bill and further trade developments.
The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE), was down 0.6% at 25,912.15 points, ending its longest daily winning streak since October 2021.
"Today's weak sentiment should be thought in the context of a very strong stretch over the past month. So some give up and consolidation of this big gains since the TSX bottom on April 8 likely will make that rally more sustainable," said Angelo Kourkafas, senior global investment strategist at Edward Jones Investments.
Markets also focused on Wednesday's hearing in the U.S. House of Representatives of the U.S. tax bill, which Trump has called "big, beautiful," as Republicans navigate internal divisions over Medicaid cuts and tax breaks in high-cost coastal states.
"The bill has the potential to offset some of the growth headwinds from tariffs, so it should be viewed in the context of a policy mix instead of just in isolation," Angelo said.
Eyes will also remain on the Group of Seven finance ministers' meetings underway in Canada for any hints that a weaker dollar could help advance trade negotiations.
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.
On TSX, heavyweight financial subindex (.SPTTFS), fell 0.7% and consumer discretionary (.GSPTTCD), stocks fell 1.2%.
Conversely, metal mining stocks (.GSPTTMT), gained 0.7% as gold prices rose to their highest in more than a week.
In corporate news, Canada Goose's (GOOS.TO), shares jumped 26.3% after the luxury retailer reported strong quarterly sales.
Reporting by Sanchayaita Roy in Bengaluru; Editing by Sahal Muhammed
