CANADA FX DEBT-Loonie sticks to narrow range as trade war fears linger

    * Canadian dollar trades near flat against the greenback
    * Price of U.S. oil rises 1.1%
    * Canadian home prices fail to rise for eighth straight
    * Canadian bond prices dip across a steeper yield curve

    TORONTO, May 14 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Tuesday as higher oil
prices offset investor worries about an escalating trade war
between the United States and China.
    Global stocks          steadied near a seven-week low as
U.S. President Donald Trump defended his trade war with China,
promising a deal with Chinese President Xi Jinping soon, even as
fears escalated about a protracted battle.              
    Canada runs a current account deficit and exports many
commodities, including oil, so its economy could be hurt by a
slowdown in the global flow of capital or trade. 
    Oil prices rose sharply after top exporter Saudi Arabia said
explosive-laden drones launched by a Yemeni armed movement
aligned with Iran had attacked facilities belonging to state oil
company Aramco. U.S. crude oil futures        were up 1.1% at
$61.73 a barrel.             
    At 9:20 a.m. (1320 GMT), the Canadian dollar          was
trading nearly unchanged at 1.3480 to the greenback, or 74.18
U.S. cents. The currency, which has advanced 1.3% since the
start of the year, traded in a narrow range of 1.3457 to 1.3488.
    Canadian Prime Minister Justin Trudeau's strategy to
prioritize spending on the middle class at the beginning of his
four-year term will not keep growth humming ahead of a general
election in October, some economists said.             
    Domestic data showed that home prices failed to rise for the
eighth consecutive month. The Teranet-National Bank Composite
House Price Index was unchanged last month from March.
    Canada's inflation report for April is due on Wednesday.
    Canadian government bond prices were lower across a steeper
yield curve, with the two-year            down 1.5 Canadian
cents to yield 1.591% and the 10-year             falling 9
Canadian cents to yield 1.674%. 

 (Reporting by Fergal Smith; editing by Jonathan Oatis)