Updates with morning prices

By Ragini Mathur

April 25 (Reuters) - Canada's main stock index edged lower on Friday as investors assessed mixed signals on U.S. and China tariff talks, despite signs of potential flexibility from Beijing, while also digesting a domestic retail sales report.

The Toronto Stock Exchange's S&P/TSX Composite Index .GSPTSE was down 0.1% at 24,699.65 points.

The benchmark index, however, was poised to secure its third consecutive weekly gain as investors responded positively to signs of easing tensions in the global trade conflict.

President Donald Trump on Friday said his administration is talking with China to strike a tariff deal and that Chinese President Xi Jinping has called him, according to an interview published by Time magazine, as Beijing continues to dispute U.S. characterization of talks.

Trump further stated in the interview that he would consider it a victory if the U.S. maintained 50% tariffs on foreign imports a year going forward.

Trump's comments countered some optimism after China granted certain U.S. imports exemptions from its hefty 125% tariffs, according to businesses notified.

Back home, Canadian retail sales fell 0.4% in February from January due to lower sales at motor vehicle and parts dealers, Statistics Canada said.

Sales likely increased 0.7% in March, the agency said in a flash estimate.

"The moderate decline in retail sales volumes in February was probably due to the unseasonably severe winter weather rather than the recent slump in sentiment, with the latest flash estimate implying that retail sales volumes rebounded strongly in March" said Stephen Brown, Deputy Chief North America Economist at Capital Economics.

Metal mining shares .GSPTTMT led the decline on the TSX with a 1% fall, after gold prices lost 2% and copper prices eased on a stronger dollar as well as demand uncertainty.

Tech stocks .SPTTTK, meanwhile, gained 0.6% as e-commerce giant Shopify SHOP.TO advanced 2.5%.

(Reporting by Ragini Mathur in Bengaluru; Editing by Shreya Biswas)

((Ragini.Mathur@thomsonreuters.com;))