* Canadian dollar trades near flat against the greenback
* Loonie touches an eight-day low at 1.3197
* Price of U.S. oil increases 1.5%
* Canadian bond prices fall across a steeper yield curve
TORONTO, Nov 7 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Thursday, recovering from an earlier eight-day low as domestic jobs data loomed and Beijing signaled a 'phase one' trade deal with the United States was close to being sealed.
Global shares rose and bond yields climbed after China's commerce ministry said the world's two economic giants were working on a deal that would roll back trade tariffs in different stages. is a major exporter of commodities, including oil, so its economy could benefit from an improved outlook for global trade.
U.S. crude oil futures CLc1 were up 1.5% at $57.20 a barrel as hopes rose for an end to a long dispute that has weighed on economic growth and fuel demand. 8:50 a.m. (1350 GMT), the Canadian dollar CAD=D4 was trading nearly unchanged at 1.3177 to the greenback, or 75.89 U.S. cents. The currency's strongest level of the session was 1.3160, while it touched its weakest since Oct. 30, the day of a Bank of Canada interest rate announcement, at 1.3197.
Canada's employment report for October is due on Friday, which could help guide expectations for the Bank of Canada's policy outlook.
The central bank last week left the door open to a possible rate cut over the coming months to help the economy weather the damaging effects of global trade conflicts. the Canadian dollar will edge higher over the coming 12 months, supported by the solid performance of Canada's economy and its high yield relative to other major currencies, a Reuters poll showed. government bond prices were lower across an steeper yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR fell 4.5 Canadian cents to yield 1.62% and the 10-year CA10YT=RR was down 59 Canadian cents to yield 1.604%.
The inversion of Canada's yield curve, a traditional harbinger of recession, receded. The gap between the 2- and 10-year yields narrowed by 3.9 basis points to a spread of 1.6 basis points in favor of the shorter-dated bond, which was the smallest gap since July 29.
The Canadian province of Ontario, the world's biggest sub-sovereign debtor, kept its focus on spending restraint in a budget update on Wednesday that included a small business tax break and cut the deficit forecast for the current fiscal year.