Updates prices to late U.S. afternoon trading

By Sinéad Carew and Marc Jones

NEW YORK/LONDON, June 11 (Reuters) - MSCI's global equities index spiked higher on Thursday while the dollar went into reverse with oil futures on renewed hopes for peace in the Middle East after U.S. President Donald Trump said he has canceled planned strikes against Iran and that the U.S., Iran and other Middle Eastern countries had come to an agreement.

Hours after threatening more bombings and a desire to "take" oil export hub Kharg Island, Trump announced that talks "have been brought to the highest level of Iranian leadership and approved." He also wrote that "discussions and final points" have been approved by the United States, Israel, Saudi Arabia, UAE, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan, Egypt, and others in a post on Truth Social.

In energy markets, oil prices quickly turned lower after the announcement. U.S. crude CLc1 fell 3% to $87.33 a barrel and Brent LCOc1 fell to $90.13 per barrel, down 3.19% on the day.

On Wall Street equities added to gains. At 01:59 p.m. ET (1759 GMT) the Dow Jones Industrial Average .DJI rose 803.60 points, or 1.61%, to 50,722.98, the S&P 500 .SPX rose 93.44 points, or 1.27%, to 7,360.43 and the Nasdaq Composite .IXIC rose 423.00 points, or 1.66%, to 25,592.50.

MSCI's gauge of stocks across the globe .MIWD00000PUS rose 10.26 points, or 0.94%, to 1,097.24.

Earlier, the pan-European STOXX 600 .STOXX index rose 0.54% after the European Central Bank delivered its first interest rate hike in nearly three years, as expected.

In currency markets, the safe-haven dollar lost ground on hopes for Middle East peace. The dollar index =USD, which measures the greenback against a basket of currencies including the yen and the euro,
fell 0.14% to 99.91, with the euro EUR= up 0.14% at $1.1551.

Against the Japanese yen JPY=, the dollar weakened 0.25% to 160.11. In cryptocurrencies, bitcoin BTC= gained 2.80% to $63,480.09.

In fixed income markets , the yield on benchmark U.S. 10-year notes US10YT=RR fell 6.3 basis points to 4.477%, from 4.54% late on Wednesday while the 30-year bond US30YT=RR yield fell 6 basis points to 4.9655% from 5.025% late on Wednesday.

The 2-year note US2YT=RR yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 5 basis points to 4.077%, from 4.127% late on Wednesday.

In precious meta ls, spot gold XAU= rose 1.97% to $4,153.54 an ounce and spot silver XAG= rose 3.47% to $65.90 an ounce.

Earlier, 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.