GLOBAL MARKETS-Global shares rise, as US dollar steadies following steep plunge

By Chris Prentice and Samuel Indyk

NEW YORK/LONDON, May 14 (Reuters) - Global shares and major Wall Street indexes were higher on Wednesday as trade tensions eased between the world's two largest economies, while the U.S. dollar steadied from recent losses.

Gold prices sank to a more than one-month low as the U.S.-China trade truce dimmed bullion's safe-haven appeal.

As the tariff spat between China and the United States appeared to abate, along with prospects for a global trade war, investors have pushed global equities higher, although European shares took a breather on Wednesday.

"It's all about the change in risk appetite," said Lars Skovgaard, senior investment strategist at Danske Bank.

"I have a hard time seeing that we'll go back to this extreme political noise," he added.

MSCI's gauge of stocks across the globe .MIWD00000PUS rose 1.75 points, or 0.20%, to 872.95.

On Wall Street, the S&P 500 .SPX rose 2.36 points, or 0.04%, to 5,888.96 and the Nasdaq Composite .IXIC rose 106.10 points, or 0.56%, to 19,117.04.

The Dow Jones Industrial Average .DJI fell 80.23 points, or 0.19%, to 42,060.84.

Europe's STOXX 600 index .STOXX closed 0.24% lower, its first loss in five sessions.

Data on Tuesday showing softer-than-expected U.S. consumer inflation also provided some relief to investors worried about the inflationary impact of U.S. tariff policies, which had severely undercut expectations of near-term Fed rate cuts.

Though traders expect inflation to pick up as tariffs lift import costs, the uncertainty over the outlook remains as Washington moves ahead to strike deals with its trading partners.

"U.S. tariffs on Chinese goods are still much higher than they were months ago," said Wei He, China economist at Gavekal Research.

"There's still plenty of uncertainty about the outlook."

ASSESSING TARIFF IMPACT

The Fed has warned of rising economic uncertainty, signalling it is prepared to wait to assess the impact of U.S. tariffs before moving to cut interest rates again. Fed Chair Jerome Powell is scheduled to give remarks on Thursday.

In remarks on Wednesday, Fed Vice Chair Philip Jefferson said recent inflation data point to continued progress toward meeting the Federal Reserve's 2% inflation goal, but the outlook is now uncertain due to the possibility new import taxes will drive prices higher.

The U.S. dollar, which has taken a beating on the back of the economic and policy uncertainty, rose 0.05% against a basket of currencies =USD including the yen and the euro.

Global asset managers held their biggest underweight position in the dollar in 19 years in May, as Trump's trade policy cut investor appetite for U.S. assets, Bank of America's global fund manager survey (FMS) showed on Tuesday.

The euro EUR= gave up earlier gains, easing 0.04%.

Yields on U.S. Treasuries were higher in subdued trade as markets awaited new economic data as well as a clearer picture of future government deficits from discussions in Congress. US/

Euro zone bond yields were steady after nudging up to multi-week highs amid easing trade tensions.

The next major signal for U.S. economic health is retail sales data for April due on Thursday. The same day, talks are planned between Ukraine and Russia in Istanbul with hopes of a ceasefire three years into the deadliest conflict in Europe since World War Two.

In commodities, rising U.S. crude stockpiles pressured prices. U.S. crude CLc1 fell 0.79% to $63.17 a barrel and Brent LCOc1 fell to $66.12 per barrel, down 0.77% on the day.

U.S. gold futures GCcv1 settled 1.8% lower at $3,188.3, and spot gold XAU= fell 2.14% to $3,178.03 an ounce.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed higher by 1.56%, to 614.33, while Japan's Nikkei .N225 fell 55.13 points, or 0.14%, to 38,128.13.

Hong Kong's Hang Seng index .HSI jumped.