* Canadian dollar dips 0.1% against the greenback
* Loonie touches its weakest since April 25 at 1.3505
* Canada's trade deficit narrows to C$3.21 billion in March
* Canadian bond prices rise across a flatter yield curve
TORONTO, May 9 (Reuters) - The Canadian dollar weakened to a two-week low against the greenback on Thursday as domestic data showed a wider-than-expected trade deficit and as investors feared the trade dispute between the United States and China could escalate.
Global equities .WORLD slumped to a more than five-week low after U.S. President Donald Trump ratcheted up trade tensions with China ahead of a high-stakes negotiation. 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.
Canada's trade deficit in March shrank slightly to C$3.21 billion as higher energy shipments helped exports increase at a slightly faster rate than imports, Statistics Canada said. The deficit was greater than the C$2.45 billion shortfall that analysts had predicted. price of oil fell as worries about the U.S.-China trade dispute counteracted a surprise decline in U.S. crude inventories. U.S. crude oil futures CLc1 were down 0.90% to $61.56 a barrel. 9:17 a.m. (1317 GMT), the Canadian dollar CAD=D4 was trading 0.1% lower at 1.3498 to the greenback, or 74.09 U.S. cents. The currency touched its weakest intraday level since April 25 at 1.3505.
Separate data showed that new housing prices in Canada were unchanged in March for the seventh month out of eight, with little or no growth in the major markets of Toronto and Vancouver. jobs report for April is due on Friday.
Canadian government bond prices were higher across a flatter yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR rose 5.5 Canadian cents to yield 1.569% and the 10-year CA10YT=RR climbed 41 Canadian cents to yield 1.663%.