Updates prices to U.S. morning trading

By Sinéad Carew and Amanda Cooper

NEW YORK/LONDON, June 9 (Reuters) - MSCI's global equities gauge pared earlier gains on Tuesday as it saw little support from Wall Street where investors waited anxiously for inflation data while the dollar dipped with oil prices on hopes for easing Middle East tensions after Iran and Israel halted attacks on each other.

U.S. Energy Secretary Chris Wright said on Tuesday that ship traffic through the Strait of Hormuz - a key energy conduit - is rising "very meaningfully."

But still, progress for a resolution of theMiddle East conflict seemed uncertain with Israel striking the historic port city of Tyre in southern Lebanon on Tuesday, killing at least eight people. Tehran had warned on Monday that it would resume hostilities if Israel continued to attack its ally Hezbollah in Lebanon.

U.S. Treasury yields edged lower as traders waited for May's consumer inflation report, due out on Wednesday, for signs of whether price pressures are continuing to build.

The S&P 500's heavyweight technology sector could not hold earlier gains, putting pressure on the benchmark index and tech-heavy Nasdaq.

Gene Goldman, chief investment officer at Cetera, pointed to anxiety ahead of the economic data as investors worry that elevated inflation would fuel worries about the Federal Reserve's next moves.

"There is a lingering bit of caution as investors are a bit worried about tomorrow’s potentially high inflation readings. Higher-than-expected inflation further brings the Fed to the forefront as a headline risk," Goldman said.

Since the release, on Friday, of a stronger than expected jobs report for May, traders have increased bets that the Fed's next move will be a rate increase rather than a cut, with the probability for a 25-basis point increase by December now at 43.4% and bets on a 50-basis point increase at about 21%, up from 12% last week, according to CME Group's FedWatch tool.

On Wall Street, at 11:01 a.m. ET (1501 GMT), the Dow Jones Industrial Average .DJI rose 145.62 points, or 0.29%, to 50,931.63, the S&P 500 .SPX fell 16.64 points, or 0.22%, to 7,389.09 and the Nasdaq Composite .IXIC fell 179.07 points, or 0.69%, to 25,750.59.

MSCI's gauge of stocks across the globe .MIWD00000PUS was up 3.23 points, or 0.29%, at 1,104.19 after earlier rising more than 1%.

The pan-European STOXX 600 .STOXX index rose 0.18% after paring earlier gains.

BORROWING COSTS

In currencies, the dollar index =USD, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.22% to 99.82, with the euro EUR= up 0.23% at $1.1561.

Against the Japanese yen JPY=, the dollar strengthened 0.04% to 160.23.

In government bonds, the yield on benchmark U.S. 10-year notes US10YT=RR fell 0.2 basis points to 4.548%, from 4.55% late on Monday while the 30-year bond US30YT=RR yield rose 0.3 basis points to 5.0272%.

The 2-year note US2YT=RR yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 1.7 basis points to 4.141%, from 4.158% late on Monday.

In energy markets , U.S. crude CLc1 fell 3.94% to $87.70 a barrel and Brent LCOc1 fell to $91.11 per barrel, down 3.33% on the day.