* European shares rise, euro dips after ECB hikes rates

* Wall Street indexes rise after Wednesday's selloff

* Gold steadies at more than 6-month low

(Updates prices to U.S. trading)

By Sinéad Carew and Marc Jones

NEW YORK/ LONDON, June 11 (Reuters) - MSCI's global equities

index rose modestly to erase some of the prior session's losses

while the dollar rose on Thursday as investors digested the

latest inflation data and oil futures rose even as attacks in

the Middle East dampened hopes for peace.

President Donald Trump said on Thursday the United States

would hit Iran "very hard tonight" and wanted at some point to

take Iran's oil infrastructure hub Kharg Island, after strikes

by both sides in the Gulf undermined a shaky ceasefire which

began in April. Iranian sources and Western officials had said

that indirect U.S.-Iranian talks on a preliminary peace deal had

intensified but hostilities this week have muddied prospects for

a swift resolution.

Meanwhile, on the data side, U.S. producer prices increased

more than expected in May, leading to the largest annual gain in

3-1/2 years as the Middle East conflict drove up the cost of

energy products. On the labor market side, the number of

Americans filing claims for unemployment benefits increased

marginally last week, pointing to continued labor market

resilience in early June.

On Wall Street stock indexes stayed mostly green during

morning trading after selling off sharply in the prior two

sessions. While uncertainty around the Middle East presented a

big overhang for investors, Mona Mahajan, head of investment

strategy and asset allocation at Edward Jones, said there were

signs of "cautious optimism from dip buyers" as well as

enthusiasm ahead of the SpaceX market debut, expected on Friday.

"There's a little bit of a bounce but I wouldn't call it an

outsized rally or full-blown optimism. Maybe the silver lining

is that folks don't yet see a reason for a full-blown bear

market because the economy is continuing to hold up," Mahajan

said.

While stocks in the volatile chip sector were providing a

big boost to Wall Street on Thursday, some of the substantial

drags were from software companies including Oracle,

whose shares tumbled 11%, after some lofty AI spending forecasts

and plans to raise nearly $40 billion in debt and equity

unnerved analysts.

On Wall Streetat 12:19 p.m. ET (1619 GMT), the Dow Jones

Industrial Average rose 420.20 points, or 0.84%, to

50,337.64, the S&P 500 rose 41.40 points, or 0.57%, to

7,308.39 and the Nasdaq Composite rose 208.92 points, or

0.83%, to 25,378.42.

MSCI's gauge of stocks across the globe rose

4.04 points, or 0.37%, to 1,091.02.

The pan-European STOXX 600 index rose 0.54% after

the European Central Bank delivered its first interest rate hike

in nearly three years, as expected.

In currency markets, after the ECB's rate hike the euro

was down 0.22% at $1.151.

The dollar index, which measures the greenback

against a basket of currencies including the yen and the euro,

rose 0.21% to 100.26 while against the Japanese yen, the

dollar weakened 0.01% to 160.53.

In fixed income, U.S. Treasury yields were mixed as investor

demand tied to quarter- and half-year portfolio rebalancing

helped offset concerns over U.S.-Iran escalations and elevated

inflation data.

The yield on benchmark U.S. 10-year notes fell

1.2 basis points to 4.528%, from 4.54% late on Wednesday while

the 30-year bond yield fell 2.1 basis points to

5.0038%.

But the 2-year note yield, which typically moves

in step with interest rate expectations for the Federal Reserve,

rose 1.4 basis points to 4.141%, from 4.127% late on Wednesday.

In energy markets, U.S. crude rose 1.17% to $91.08 a

barrel and Brent rose to $93.63 per barrel, up 0.57% on

the day.

In precious metals, gold prices held nearly steady after

hitting a six-month low on Thursday, as the soft U.S. jobs

report offset pressure from strong inflation data and increased

expectations of higher interest rates ahead of next week's Fed

meeting.

Spot gold was steady at $4,081.99 per ounce at 11:27

a.m. ET (1527 GMT), after hitting its lowest point since late

November earlier in the session. U.S. gold futures for

August delivery were down 0.7% at $4,103.60.