Updated at 10:43 a.m. ET (1443 GMT

By Chris Prentice and Samuel Indyk

NEW YORK/LONDON, May 14 (Reuters) - Global shares and Wall Street were higher on an easing in trade tensions between the world's two largest economies, while the U.S. dollar extended losses as benign U.S. inflation data kept Federal Reserve rate cuts on the table.

Gold prices fell as the U.S.-China trade truce dimmed bullion's safe-haven appeal.

European stocks eased after four sessions of gains. Asian shares gained.

MSCI's gauge of stocks across the globe .MIWD00000PUS rose 2.24 points, or 0.26%, to 873.44.

As a truce in the tariff spat between China and the United States appeared to hit pause in the 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.

On Wall Street, the Dow Jones Industrial Average .DJI rose 64.35 points, or 0.15%, to 42,204.78, the S&P 500 .SPX rose 2.26 points, or 0.04%, to 5,888.81 and the Nasdaq Composite .IXIC rose 72.27 points, or 0.38%, to 19,082.35.

Europe's STOXX 600 .STOXX retreated after having jumped over 17% since its trough on April 9, the day U.S. President Donald Trump announced he would be pausing most of the reciprocal tariffs on U.S. trading partners.

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.

The broader Topix .TOPX snapped a 13-day winning run, its longest streak in nearly 16 years.

Hong Kong's Hang Seng index .HSI jumped, lifted by tech stocks after Chinese e-commerce retailer JD.com 9618.HK posted strong results. Tencent 0700.HK, China's biggest tech company, posted a 13% rise in first-quarter revenue on Wednesday.

Focus this week will also be on earnings from Alibaba 9988.HK on Thursday.

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."

Trump in an interview on Tuesday said he could see himself dealing directly with Chinese President Xi Jinping on details of a trade pact. His touted "potential deals" with India, Japan and South Korea are still pending.

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.

The U.S. dollar, which has taken a beating recently on the back of the economic and policy uncertainty, fell 0.24% 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= gained 0.25% to $1.1212.

U.S. yields rose as investors weighed softer-than-expected April inflation data against expectations that tariffs will fuel higher prices in the coming months. US/

Euro zone yields meanwhile retreated.

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. Brent crude futures LCOc1 fell to $66.07 per barrel, down 0.84% on the day. U.S. crude CLc1 fell 0.91% to $63.09 a barrel

Spot gold XAU= fell 1.96% to $3,183.69 an ounce.

(Reporting by Chris Prentice in New York, Samuel Indyk in London and Rocky Swift in Tokyo; Editing by Shri Navaratnam, Michael Perry, Toby Chopra and Andrea Ricci)

((Samuel.Indyk@thomsonreuters.com))