CANADA STOCKS-TSX futures rise as US-China slash tariffs

May 12 (Reuters) - Futures for Canada's main stock index surged on Monday, after the United States and China agreed to temporarily slash reciprocal tariffs, bolstering investor optimism and easing fears of an all-out trade war unsettling global markets.

June futures on the S&P/TSX index .SXFcv1 were up 1.34% at 6:14 a.m. ET (1014 GMT).

Following weekend talks in Geneva, the two largest economies announced on Monday that the U.S. will reduce the extra tariffs it imposed on Chinese imports in April to 30% from 145%, and Chinese duties on U.S. imports will drop to 10% from 125%. The new measures will be effective for 90 days.

The U.S.-Sino deal comes days after the United States and the UK's limited trade agreement that signaled an easing of tariff-related uncertainty.

Back home, Canadian Prime Minister Mark Carney's new cabinet will be sworn in on Tuesday.

In commodities, oil prices rose more than $2 in Asian trading after the U.S.-China announcement, and base metals prices also increased on Monday.

Meanwhile, gold prices dropped 3% to a more than one-week low.

In corporate news, Canadian miner Pan American Silver PAAS.TO will acquire MAG Silver Corp MAG.TO in a transaction that values the silver mining company at about $2.1 billion.

Canada's main stock index added to its weekly gain on Friday, led by energy and metal mining shares, as hopes of easing trade tensions offset evidence about tariff-related impacts on domestic activity.

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