June 24 (Reuters) - Futures linked to Canada's main

stock index rose on Tuesday after U.S. President Donald Trump

said Iran and Israel had agreed to a ceasefire after 12 days of

war.

Futures on the S&P/TSX index were up 0.5% at 06:50

a.m. ET (10:50 GMT)

However, the truce remained shaky as, hours after the

ceasefire declaration, Israeli Defence Minister said Iranian

missiles were fired in violation of the agreement and he had

ordered the military to strike Tehran in response.

Iran denied the charge.

Trump said both Israel and Iran violated the ceasefire he

had announced hours earlier.

In other developments, the European Union and Canada agreed

to deepen ties with a new security pact on Monday before the

NATO summit began in the Hague.

Oil prices, dropped more than 3% to two-week

lows, while gold slipped as demand for safe-haven assets

dampened on news of the ceasefire.

The commodity-heavy S&P/TSX composite index

approached recent record highs on Monday as the market shrugged

off escalating tensions in the Middle East.

Investors will monitor Federal Reserve Chair Jerome Powell's

semi-annual monetary policy testimony before Congress closely

for clues on rate cuts after recent dovish remarks from Fed

speakers.

Also, Canada's May CPI data is expected later on Tuesday.

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