Updates after market open

May 28 (Reuters) - Canada's main stock index inched up on Thursday, shaking off earlier sluggishness after a report said that the U.S. and Iran had reached an outline agreement to extend their ceasefire.

At 11:09 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 0.15% at 34,463.92 points.

• An Axios report said that the two sides agreed on a 60-day memorandum of understanding to extend the truce and launch negotiations on Iran's nuclear program, but the plan still needed U.S. President Donald Trump's signoff.

• While markets have been disappointed by false dawns before, even tentative signs of progress toward ending the conflict have been enough to spark rallies in stocks.

• Energy shares .SPTTEN rose 0.34%, while the materials group .GSPTTMT gained 1.45%.

• Financials .SPTTFS fell 0.88% despite strong earnings from Canadian lenders Royal Bank of Canada RY.TO, TD Bank TD.TO and CIBC CM.TO.

• Investors were also assessing the latest U.S. personal consumption expenditures data, which showed that inflation increased at its fastest pace in three years in April, driven by higher energy prices.

• Still, analysts at RBC Economics said the U.S. economy was holding up well.

• "Labor market data is looking solid, and growth hasn't meaningfully slowed. We don't expect the oil price shock will tip the economy into a recession," they said.

• The strength of the U.S. economy often has implications for rate moves by the Bank of Canada.