CANADA FX DEBT-Canadian dollar weakens as U.S. stimulus talks drag on

* Canadian dollar falls 0.1% against the greenback * Price of U.S. oil increases 0.1% * Canadian bond yields were little changed across the curve TORONTO, Oct 22 (Reuters) - The Canadian dollar edged lower against its broadly stronger U.S. counterpart on Thursday as investor optimism waned for a pre-election U.S. coronavirus relief package, with the loonie extending its pullback from a six-week high the day before. World shares slid to a two-week low as a surge in global COVID-19 cases and fractious U.S. stimulus talks kept financial markets cautious. Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to the outlook for the global economy. U.S. crude prices were up 0.1% at $40.08 a barrel, with the market struggling to fully recover from the previous session's losses when higher U.S. gasoline inventories signaled a deteriorating demand outlook as the number of coronavirus cases soars. The U.S. dollar rebounded from seven-week lows against a basket of major currencies, while the Canadian dollar was trading 0.1% lower at 1.3160 to the greenback, or 75.99 U.S. cents. On Wednesday, the loonie touched its strongest intraday level since Sept. 7 at 1.3077 but ended the day lower. Data on Wednesday showed that Canada's annual inflation rate accelerated in September but softer-than-expected retail sales growth for August and a sluggish estimate for September suggest a dampening heading into the holidays. Also on Wednesday, Canadian Prime Minister Justin Trudeau survived a confidence vote after a key opposition party backed his ruling Liberals, averting the chance of a snap election as a coronavirus outbreak worsens. Canadian government bond yields were little changed across the curve on Thursday, with the 10-year down less than half a basis point at 0.615%. (Reporting by Fergal Smith; editing by Jonathan Oatis)